All of the loan programs fit under the Conforming loan limits in California. The 10/1 ARM is the longest fixed-rate period under the Conforming loan ARM program. All Adjustable Rate Mortgages are based on a 30 year time period.
The first number (for example 5/1) is the number of years the interest rate is fixed and the second number represents how often the rate adjusts after the fixed-rate period. The fixed-rate period is always at the beginning. So a 5/1 ARM:
- For the first five years, the interest rate is fixed and it does not change
- For the first five years, your payment does not change
- After the first five years, your rate adjusts once a year each and every year until year 30.
- Your monthly payment adjusts once a year after the fixed-rate period.
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What Types Of Conforming Loans Are There?
The most popular conforming loans are the 30-year Fixed-Rate Mortgage (FRM) loans and the 15-year fixed-rate loan. Most homeowners or homebuyers go with either a 30-year or 15-year fixed-rate program however there are many other options. Here is a full list of all the fixed-rate mortgage options with Conforming loan limits.
- 30-year fixed-rate
- 25-year fixed-rate
- 20-year fixed-rate
- 15-year fixed-rate
- 10-year fixed-rate
There are no fixed rate options below a 10 year fixed rate. As for the Adjustable Rate Mortgages (ARM) under the Conforming loan program:
- 5/1 Adjustable Rate Mortgage
- 7/1 Adjustable Rate Mortgage
- 10/1 Adjustable Rate Mortgage
Home values have increased over the last decade and raising the Conforming loan limits allows more people to qualify for the best available mortgage rates. The Federal Housing Finance Agency (FHFA) updates its conforming loan limits every year.
Here are the previous loan limits for years 2017 to 2020.
The California Conforming loan Limit in 2020 was $510,400 and in some high-cost counties, like Los Angeles, Orange, San Mateo, and Alameda) it was as high as $765,600.
The California Conforming Loan limit in 2019 was $483,350 and in some high-cost counties, like Los Angeles, Orange, and Alameda) it was as high as $726,525.
The California Conforming Loan limit in 2018 was $453,100 and in some high-cost counties, like Los Angeles, Orange, and Santa Clara) it was as high as $679,650.
The California Conforming Loan limit in 2017 was $424,100 and in some high-cost counties, like Los Angeles, and San Francisco) it was as high as $636,150.