THE BASICS
What Is a 10/1 ARM?
A 10/1 ARM gives you a fixed interest rate for the first 10 years. After that, it adjusts once per year based on market conditions. That's it.
Right now, you can find 10-year jumbo ARMs around 5.5% — compared to 30-year fixed rates hovering above 7%. That's a big difference.
REAL NUMBERS
Let's Talk Dollars - $1,200,000 Loan
Let's Talk Dollars - $1,200,000 Loan
*Estimates only. Consult your lender for exact figures
"You're not marrying your mortgage — you're dating it for a decade and saving six figures while you do."
IS IT RIGHT FOR YOU?
An ARM Could be a Smart Move If You....
An ARM Could be a Smart Move If You....
- Plan to move or upgrade within 10 years​​​​​​​
- Want to maximize buying power in a higher price range
- Are buying a "jumbo" property (Your loan is over $766,550, that's what qualifies as a jumbo loan in most of LA) where the rate difference is even more significant
It's not for everyone — but it's worth a conversation with your lender before you assume a 30-year fixed is your only option.
