Question 1

How long does the fixed period last on an ARM?

Accepted Answer

Common options are 3, 5, 7, or 10 years. After that, the rate adjusts annually based on a market index.

Question 2

What happens when my ARM adjusts?

Accepted Answer

Your rate moves up or down based on an index plus a margin. Annual and lifetime caps limit how much it can change.

Question 3

Can I refinance before my ARM adjusts?

Accepted Answer

Yes. Many borrowers refinance into a fixed rate before the adjustment period begins. There's no guarantee rates will be favorable then.

Question 4

Are ARMs available for rural Colfax properties?

Accepted Answer

Many are, but properties with acreage or non-standard features require specific programs. We can match you with lenders that handle those.

Question 5

Is an ARM riskier than a fixed loan?

Accepted Answer

It carries more uncertainty, not necessarily more danger. If your timeline matches the fixed period, the risk is manageable.

ARM Loans in Colfax, CA — Lower Start Rates, Real Strategy