Question 1

How long does the fixed rate period last on an ARM?

Accepted Answer

Common structures are 5/1, 7/1, and 10/1 ARMs. The first number is the fixed years, the second is how often it adjusts after that.

Question 2

What index do most ARMs in California use?

Accepted Answer

Most conforming ARMs today use SOFR as their index. Your margin is added to that index to set your adjusted rate.

Question 3

Can I refinance out of an ARM before it adjusts?

Accepted Answer

Yes — and many borrowers in Sebastopol plan to do exactly that. Just factor in closing costs when running the numbers.

Question 4

Are ARM rates available on jumbo loans in Sonoma County?

Accepted Answer

Yes. Jumbo ARMs are common here and often carry competitive rates. Rates vary by borrower profile and market conditions.

Question 5

What credit score do I need for the best ARM rate?

Accepted Answer

You can qualify at 620, but scores above 720 get the sharpest pricing. The rate difference between tiers is meaningful on a large loan.

Question 6

What does a 2/2/5 cap mean on an ARM?

Accepted Answer

Your rate can rise 2% at first adjustment, 2% each year after, and no more than 5% over the life of the loan.

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