Question 1

What happens to my ARM payment after the initial fixed period ends?

Accepted Answer

Your rate adjusts based on the index plus the lender's margin. Payments can rise 1–3% annually, capped by the loan's lifetime maximum. A $400,000 ARM could see payments jump $200–400+ monthly at adjustment.

Question 2

Can I refinance an ARM before the rate adjusts?

Accepted Answer

Yes. Most ARM borrowers refinance into a fixed-rate loan before the adjustment period ends. Plan your refinance 6–12 months before the adjustment to lock in a new rate while you still have time.

Question 3

Do I need 20% down for a Portfolio ARM in Corning?

Accepted Answer

Yes — 20% down is the standard minimum for investment property ARMs. Some portfolio lenders accept 15% down with higher rates and stricter reserves. Expect to provide six months of liquid reserves regardless.

Question 4

What credit score do I need to qualify for a Portfolio ARM?

Accepted Answer

700+ FICO is the floor for most portfolio lenders. Scores below 700 face rate penalties or outright denial. Investment properties require stronger credit than owner-occupied homes.

Question 5

How long does it take to close a Portfolio ARM in California?

Accepted Answer

30–45 days is typical for investment properties. Documentation is heavier than fixed-rate loans because lenders verify rental income and reserves. Bring lease agreements and bank statements ready.

Portfolio Arms in Corning: Adjustable-Rate Mortgages for Investors