Question 1

What happens when my ARM adjusts in Saratoga?

Accepted Answer

Your rate changes based on an index plus a margin, usually capped at 2% per adjustment and 5% lifetime. Most Saratoga clients refinance or sell before the first adjustment hits.

Question 2

Do ARMs require higher credit scores than fixed mortgages?

Accepted Answer

No, qualification standards match fixed-rate loans. Jumbo ARMs need 680+ credit regardless of rate type. Lenders actually prefer ARMs because they carry less long-term risk.

Question 3

Can I refinance my ARM before it adjusts?

Accepted Answer

Yes. Most Saratoga borrowers refinance within four to six years. You face no prepayment penalty, and refinancing before adjustment locks a new fixed period at current rates.

Question 4

How much lower are ARM rates compared to fixed in Saratoga?

Accepted Answer

ARMs typically start 0.50-0.75% below 30-year fixed rates. On a $2 million loan, that's $800-1,200 less per month. Rates vary by borrower profile and market conditions.

Question 5

What's the minimum down payment for a Saratoga ARM?

Accepted Answer

Jumbo ARMs require 20% down for purchase. Some lenders accept 15% with mortgage insurance. Higher down payments unlock better rates and eliminate PMI requirements entirely.

Question 6

Should I choose a 5-year or 7-year ARM term?

Accepted Answer

Match the fixed period to your timeline. If you expect to move within five years, take the 5/1 ARM for the lowest rate. Staying longer makes a 7/1 worth the slightly higher start rate.

Adjustable Rate Mortgages in Saratoga: Lower Start Rates for Silicon Valley Buyers