Question 1

What's the typical initial fixed period for Burlingame ARMs?

Accepted Answer

Most buyers choose 5/1 or 7/1 ARMs. The rate stays fixed for 5 or 7 years, then adjusts annually based on an index plus a margin.

Question 2

How much lower are ARM rates than fixed rates?

Accepted Answer

ARMs typically start 0.5-0.75% below 30-year fixed rates. On large loan amounts common in Burlingame, that translates to major monthly savings during the fixed period.

Question 3

What happens when the ARM adjusts?

Accepted Answer

After the fixed period ends, your rate adjusts based on a benchmark index plus a set margin. Annual and lifetime rate caps limit how much your payment can increase.

Question 4

Do ARMs work for jumbo loans in Burlingame?

Accepted Answer

Yes, jumbo ARMs are common here. They offer lower rates than fixed jumbo loans and work well for buyers who expect to refinance or sell within 7-10 years.

Question 5

Can I refinance my ARM before it adjusts?

Accepted Answer

Yes, most borrowers refinance or sell before the first adjustment. No prepayment penalties apply to most ARM products we offer.

ARMs in Burlingame: Lower Rates for Short-Term Buyers