Question 1

How much lower are ARM rates versus fixed in South San Francisco?

Accepted Answer

Typically 0.50-1.00% lower during the initial period. Exact spreads vary by borrower profile and market conditions.

Question 2

What happens at the first adjustment on a 5/1 ARM?

Accepted Answer

Your rate adjusts based on the index plus margin, capped by your adjustment limit. Most see 1-2% increases if rates haven't dropped.

Question 3

Can I refinance before my ARM adjusts?

Accepted Answer

Yes, if rates improve or you want fixed stability. Plan for closing costs and requalification based on current income and credit.

Question 4

Do jumbo ARMs require larger down payments in San Mateo County?

Accepted Answer

Yes, most jumbo ARMs need 20% down minimum. Some portfolio lenders go to 15% but charge higher rates.

Question 5

Should I choose a 5/1 or 7/1 ARM for a Peninsula property?

Accepted Answer

Match the fixed period to your ownership timeline. Biotech workers averaging 5-year stints should lean toward 5/1 ARMs.

ARMs in South San Francisco: Rate Flexibility for Peninsula Buyers