Question 1

What ARM terms are most popular in Simi Valley?

Accepted Answer

5/1 and 7/1 ARMs lead in popularity. These provide five or seven years of fixed rates before annual adjustments begin. Rates vary by borrower profile and market conditions.

Question 2

Can I refinance my ARM before rates adjust?

Accepted Answer

Yes, refinancing before adjustment is common. Many Simi Valley borrowers refinance to fixed-rate loans or new ARMs during the initial fixed period.

Question 3

How much can my ARM payment increase in Simi Valley?

Accepted Answer

Rate caps limit increases, typically 2% per adjustment and 5-6% over the loan lifetime. Your specific caps depend on your ARM agreement terms.

Question 4

Are ARMs good for Ventura County investment properties?

Accepted Answer

ARMs work well for short-term investment strategies. Lower initial rates improve cash flow if you plan to sell or refinance within several years.

Question 5

What happens when my ARM adjusts in Simi Valley?

Accepted Answer

Your rate changes based on an index plus a margin. Lenders notify you 60-120 days before adjustments, showing new rates and payment amounts.

Adjustable Rate Mortgages (ARMs) in Simi Valley: Flexible Financing for Your Home