Question 1

How long is the fixed period on an ARM?

Accepted Answer

Common options are 3, 5, 7, or 10 years fixed before rates adjust. A 7/1 ARM fixes your rate for 7 years, then adjusts annually.

Question 2

What index do ARMs use after the fixed period?

Accepted Answer

Most ARMs today use SOFR as the benchmark index. Your rate equals the index plus a lender margin.

Question 3

Can I refinance before my ARM adjusts?

Accepted Answer

Yes — many Sonora buyers refinance into a fixed rate before the first adjustment. There's no penalty on most conventional ARMs.

Question 4

Do ARMs work for Tuolumne County vacation properties?

Accepted Answer

Often yes, but some ARM programs restrict non-primary residences. We verify property eligibility before locking a program.

Question 5

What's the maximum rate increase per year on an ARM?

Accepted Answer

Most conforming ARMs cap annual increases at 2%. Lifetime caps are typically 5% above the initial rate.

ARM Loans in Sonora, CA — Lower Rates, Clear Eyes