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Loomis sits in Placer County, where properties often carry price tags that make rate differences matter. An ARM's lower initial rate can cut your payment significantly in the first 5–10 years.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. That's exactly when ARM borrowers gain the most ground — their initial rates run well below that.
620
Min Credit Score
5, 7, or 10 Years
Initial Fixed Period
45%
Typical DTI Limit
5/1, 7/1, 10/1
Common ARM Types
Fixed then Adjustable
Rate Type
Adjustable Rate Mortgages (ARMs) in Loomis
Most ARMs require a 620 minimum credit score. Better scores — 740 and above — unlock the sharpest initial rates from wholesale lenders.
Lenders qualify you at the note rate, not the fully indexed rate, on many ARM products. Your debt-to-income ratio still needs to stay under 45% to clear most programs.
Local decision guide
Use this guide to connect adjustable rate mortgages (arms) eligibility, lender expectations, and local market factors before comparing payment options in Loomis.
Loomis sits in Placer County, where properties often carry price tags that make rate differences matter. An ARM's lower initial rate can cut your payment significantly in the first 5–10 years.
HousingWire flagged a 10.4% drop in mortgage applications as the 30-year fixed hit 6.57%. That's exactly when ARM borrowers gain the most ground — their initial rates run well below that.
Most ARMs require a 620 minimum credit score. Better scores — 740 and above — unlock the sharpest initial rates from wholesale lenders.
Not every lender prices ARMs the same way. Wholesale lenders we access often price 5/1 and 7/1 ARMs 50–75 basis points below retail bank offerings.
Portfolio lenders are worth watching here. Some hold ARMs in-house and offer adjustment caps that are more borrower-friendly than standard secondary market products.
The 5/1 ARM makes sense if you plan to sell or refinance within five years. Paying for 30 years of rate stability you won't use is a real cost.
Watch the caps closely — 2/2/5 means your rate can jump 2% at first adjustment, 2% each year after, and 5% total over the life of the loan. That's the number that matters most.
A 30-year fixed gives you certainty. An ARM gives you savings now, with managed risk later. For Loomis buyers with strong income and exit plans, the ARM often wins on math.
Jumbo ARM products are also worth comparing if your loan clears conforming limits. Jumbo ARMs can price more aggressively than jumbo fixed-rate loans in Placer County.
Loomis attracts buyers relocating from the Bay Area or Sacramento. Many plan a move-up purchase within 5–7 years — that timeline fits an ARM well.
Placer County properties with acreage or custom builds can push loan sizes higher. A larger loan balance amplifies the dollar savings from a lower ARM rate.
Common options are 5, 7, or 10 years fixed before the rate adjusts. A 7/1 ARM holds your rate steady for seven years.
Your rate moves with an index like SOFR, plus a margin set by the lender. Caps limit how much it can change at each adjustment.
Yes. Many ARM borrowers refinance or sell before the first adjustment. Just watch for prepayment penalties on some portfolio products.
Yes, and the gap widens when fixed rates climb. Rates vary by borrower profile and market conditions.
Most lenders require 620 minimum. Scores of 740 or above get you the best initial rate tiers across wholesale lenders.
Probably not. Fixed loans are better for 10+ year holds. An ARM rewards buyers with a clear short- to mid-term timeline.