Question 1

How long does the fixed period last on an ARM?

Accepted Answer

Common structures are 5, 7, or 10 years fixed before adjustments begin. Longer fixed periods usually come with slightly higher start rates.

Question 2

What happens when my ARM rate adjusts?

Accepted Answer

The rate moves based on an index plus a lender margin. Caps limit how much it can change per adjustment and over the loan's life.

Question 3

Are ARMs risky for Los Gatos buyers?

Accepted Answer

Risk depends on your timeline. If you sell or refinance before the fixed period ends, the adjustment never touches you.

Question 4

Can I get an ARM on a $2M Los Gatos purchase?

Accepted Answer

Yes. Jumbo ARMs are common in this price range. Expect stricter reserve and documentation requirements than conforming loans.

Question 5

What credit score do I need for a jumbo ARM?

Accepted Answer

Most jumbo ARM lenders want 720 or higher. Some portfolio lenders will go lower with strong assets and low DTI.

Question 6

How does SRK find the best ARM for my situation?

Accepted Answer

We compare ARM structures across 200+ wholesale lenders. We match your hold timeline and income profile to the right program.

ARM Loans in Los Gatos: Lower Rates, Smarter Strategy