Adjustable-Rate Mortgages (ARM) in Bakersfield
5/1, 7/1, and 10/1 ARM options with a lower initial rate than fixed financing. The right fit for buyers with a defined timeline.
ARM Structures Available
| Structure | Fixed Period | Adjusts |
|---|---|---|
| 5/1 ARM | First 5 years | Annually after year 5 |
| 7/1 ARM | First 7 years | Annually after year 7 |
| 10/1 ARM | First 10 years | Annually after year 10 |
A common cap structure is 2/2/5: 2% max move at the first adjustment, 2% max at each adjustment after that, 5% max over the life of the loan. Exact caps vary by lender and program.
Why Buyers Choose an ARM
ARMs typically start with a lower rate than a comparable fixed-rate mortgage, which either lowers your monthly payment or increases your purchasing power on the same budget. That tradeoff makes sense for buyers who have a genuine reason to expect they won't hold the loan past the fixed period, a planned relocation, an anticipated move-up purchase, or an income trajectory that makes refinancing likely before the adjustment date arrives.
Don't just compare today's ARM rate to today's fixed rate. Ask Dan to show you the worst-case payment at the maximum cap, and have an honest plan for what you'll do if you're still in the loan when the fixed period ends.
ARM Loan FAQs
Related Loan Programs
Have a Defined Timeline? An ARM Might Save You Money
Dan will run the real numbers, including the worst-case scenario. Call (661) 342-9381 or apply online.