Question 1

What ARM terms work best for Foster City buyers?

Accepted Answer

7/6 and 10/6 ARMs match typical tech career timelines. The fixed period covers most ownership before relocation or refinancing.

Question 2

How much do I save with an ARM versus a fixed-rate loan?

Accepted Answer

Initial rates run 0.5%-1.0% lower than 30-year fixed mortgages. On a $2 million loan, that's $800-$1,600 less monthly at the start. Rates vary by borrower profile and market conditions.

Question 3

What happens when my ARM adjusts?

Accepted Answer

Your rate moves based on an index plus a fixed margin. Cap structures limit increases—typically 2% at first adjustment, 2% per adjustment after, 5% lifetime.

Question 4

Can I refinance before my ARM adjusts?

Accepted Answer

Yes, most borrowers refinance during the fixed period. No prepayment penalties exist on modern ARMs, giving you flexibility to lock in fixed rates later.

Question 5

Do ARMs work for Foster City jumbo loans?

Accepted Answer

Absolutely. Jumbo ARMs are common here and offer the same rate advantages as conforming ARMs. Lenders just need experience with high San Mateo County property values.

Adjustable Rate Mortgages in Foster City: Strategic Financing for Silicon Valley Professionals