Question 1

What does the '5' mean in a 5/1 ARM?

Accepted Answer

The rate stays fixed for 5 years. Then it adjusts once per year based on a market index.

Question 2

How often can my rate change after the fixed period?

Accepted Answer

Most ARMs adjust annually after the initial period. Your cap structure limits how much it can move each year.

Question 3

What index do ARM rates follow?

Accepted Answer

Most conventional ARMs today use SOFR. Your margin plus the index equals your new rate at adjustment.

Question 4

Can I refinance out of an ARM later?

Accepted Answer

Yes — but refinancing costs money and requires you to qualify again. Plan your exit before you close.

Question 5

Are ARMs harder to qualify for in Vacaville?

Accepted Answer

Not harder — but lenders stress-test your payment at a higher rate. Your DTI must hold up at that number.

Question 6

Do ARMs work for investment properties in Solano County?

Accepted Answer

Yes. Investors use ARMs to lower carrying costs on short-to-mid holds. Portfolio ARMs are also worth comparing.

ARM Loans in Vacaville, CA — Lower Rates, Smarter Timing