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Rialto sits in San Bernardino County, where buyers are hunting for every advantage they can find. An ARM's lower initial rate is one real tool in that search.
Bankrate flagged rates hitting 6.19% this week as geopolitical tension rattled markets. That spread between fixed and ARM start rates matters more when fixed rates climb like this.
6.19% (as of 3/13/26)
Fixed Benchmark Rate
620
Min Credit Score
5/1 or 7/1 ARM
Common ARM Term
2/2/5 or 5/2/5
Typical Cap Structure
5%
Min Down Payment
Most ARMs are conventional loans. Lenders typically want a 620 credit score minimum. Stronger scores get better margins and lower caps.
Your debt-to-income ratio matters here. Lenders qualify you at the fully indexed rate — not just the teaser. Plan your budget around worst-case, not best-case.
Not every lender prices ARMs competitively. Many retail banks push fixed products. Wholesale lenders often have sharper ARM pricing and more index options.
We shop ARMs across 200+ wholesale lenders. The margin and cap structure vary a lot. A 2/2/5 cap structure is very different from a 5/2/5 — those numbers define your risk.
The 5/1 ARM is the most common choice we place for Rialto buyers. You get five years locked, then annual adjustments. That's enough runway for most move-up plans.
ARMs make the most sense when you have a clear exit — refinance, sale, or payoff — before the fixed period ends. If you're buying forever, a fixed rate is cleaner.
A 30-year fixed gives you certainty. An ARM gives you a lower rate now. The right choice depends on how long you stay and what rates do during that window.
Jumbo buyers in Rialto see the biggest ARM benefit. The dollar savings on a large balance are significant, even with a modest rate difference. Rates vary by borrower profile and market conditions.
Rialto's proximity to major employment corridors means buyers here often relocate within 5-7 years. That timeline aligns well with a 5/1 or 7/1 ARM structure.
San Bernardino County conforming loan limits apply here. Most Rialto purchases fall within conforming limits, so agency ARM products are fully available to you.
The spread shifts with market conditions. ARM start rates typically run 0.5–1% below comparable fixed rates. Rates vary by borrower profile and market conditions.
The rate is fixed for 5 years, then adjusts once per year. Your cap structure limits how much it can move each adjustment and over the loan's life.
Caps limit how far your rate can rise. A 2/2/5 cap means 2% at first adjustment, 2% per year after, and 5% max over the life of the loan.
Yes. Many borrowers refinance before the fixed period ends. Your ability to refinance depends on rates, equity, and your financial profile at that time.
Probably not. If you're staying 10+ years, a fixed rate removes payment risk. ARMs reward borrowers with a defined, shorter time horizon.
Most conforming ARMs adjust based on SOFR — the Secured Overnight Financing Rate. Your margin plus the index equals your new rate at each adjustment.
Adjustable Rate Mortgages (ARMs) in Rialto