Question 1

How long does my rate stay fixed on an ARM?

Accepted Answer

Depends on the product. A 5/6 ARM is fixed for 5 years, a 7/6 for 7 years. Pick the term that matches your plan.

Question 2

What index do ARM rates in California use?

Accepted Answer

Most conventional ARMs now use SOFR as the index. Your rate equals SOFR plus the lender's margin after the fixed period ends.

Question 3

Can my payment spike after the fixed period?

Accepted Answer

Rate caps limit how much it can move. A 2/2/5 cap structure means no more than 2% at first adjustment and 5% total lifetime.

Question 4

Does an ARM make sense in Suisun City right now?

Accepted Answer

If you plan to move or refinance within 7 years, yes. Paying fixed-rate premiums for a timeline you won't use costs you money. Rates vary by borrower profile and market conditions.

Question 5

Can I refinance out of an ARM before it adjusts?

Accepted Answer

Yes. Most ARMs have no prepayment penalty. Refinancing before the fixed period ends is a common exit strategy.

Question 6

How is my ARM rate calculated after the fixed period?

Accepted Answer

Your lender adds a set margin to the current index value. That sum becomes your new rate, subject to cap limits.

ARM Loans in Suisun City — Lower Rates, Smarter Strategy