Question 1

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

Accepted Answer

Common terms are 5, 7, or 10 years fixed before the rate adjusts. Pick based on how long you realistically plan to own.

Question 2

What index do most ARMs use today?

Accepted Answer

Most lenders now use SOFR as the index. Your rate equals the index plus a margin set at closing.

Question 3

Can I refinance out of an ARM before it adjusts?

Accepted Answer

Yes. Many borrowers refinance into a fixed rate before the adjustment period. Your options depend on rates and equity at that time.

Question 4

Are ARMs available for jumbo loans in Ventura County?

Accepted Answer

Yes. Jumbo ARMs are common here and can offer meaningful payment savings on higher-priced properties.

Question 5

What are rate caps and why do they matter?

Accepted Answer

Caps limit how much your rate can increase. A typical structure is 2% per adjustment and 5% lifetime above your start rate.

Question 6

Do ARMs require a higher down payment?

Accepted Answer

Not necessarily. Conventional ARMs can allow as little as 5% down. Jumbo ARMs typically require 10-20%.

ARM Loans in San Buenaventura: Lower Rates, Smarter Strategy