Question 1

What does the rate adjust to after the fixed period?

Accepted Answer

Your rate resets to an index — often SOFR — plus a lender margin. Annual and lifetime caps limit how high it can go.

Question 2

Can I refinance before my ARM adjusts?

Accepted Answer

Yes. Many borrowers refinance before the first adjustment. That strategy works best when rates drop or hold steady.

Question 3

Does an ARM make sense for a Dunsmuir vacation home?

Accepted Answer

It can. Short-hold or seasonal-use buyers often benefit from lower ARM starting rates. Ask about second-home ARM programs.

Question 4

How much lower is an ARM rate versus a 30-year fixed?

Accepted Answer

The spread varies. Rates vary by borrower profile and market conditions. Get a side-by-side quote before deciding.

Question 5

What are rate caps on an ARM?

Accepted Answer

Caps limit how much your rate can rise per adjustment and over the loan's life. A 2/2/5 cap is common — ask your broker to explain yours.

ARM Loans in Dunsmuir, CA — Lower Rates, Real Trade-offs