Question 1

How much lower are ARM rates than fixed rates in Turlock?

Accepted Answer

ARMs typically price 0.50-1.00% below comparable fixed-rate loans. Exact spreads depend on term length and current market conditions.

Question 2

What happens when my ARM adjusts?

Accepted Answer

Your rate moves up or down based on the index plus margin. Rate caps limit how much it can change per adjustment and over the loan life.

Question 3

Can I refinance before my ARM adjusts?

Accepted Answer

Yes, most borrowers refinance during the fixed period. You'll need sufficient equity and qualifying income at that time.

Question 4

What's the difference between 5/1 and 7/1 ARMs?

Accepted Answer

The first number is years of fixed rates. 7/1 ARMs give two more years of payment certainty before adjustments begin.

Question 5

Do ARMs make sense for investment properties in Turlock?

Accepted Answer

ARMs work well for rental properties you plan to sell within 5-7 years. Lower rates boost cash flow during your hold period.

Adjustable Rate Mortgages in Turlock: Lower Start, Strategic Flexibility