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Answers (6)
- Marketing Consultant, "Life Smith"
- Contributions:121
Do a safe 7/1 ARM and witch intrest rate like Brokers do. Take control of knowing what your mortgage is. Dont get just facts about your loan and or Home, talk to a loan officer thats been there. I have some grate Lenders profilse out of DC,check them out
- Jim Fett, "jfettstearns"
- Contributions:23
I agree with the previous comments. It's difficult to say where property values and interest rates will be in 5 years from now. With rates record low's these days it's hard to believe that they will remain in this area 5 years down the road. The rate and payment on the 5 year loan are obviously attractive today but you want to take into consideration the big picture. Do you plan on moving within 5 years or do you realistically see an increased income prior to then? If you have no plans on going anywhere and the 30 year payment is comfortable, it's the conservative but safe way to go. As Doug previously mentioned, get advice from your lender so that you can weigh the pros and cons and make the best decision for you.
- Doug Katz, "Doug Katz"
- Contributions:5
I would agree with Wayne with the addition of your long-term plans and possible life changes. You should not make this decision in a vacuum, but rather with the direct consultative advice of your [Self-promotional link removed by Zillow moderator]. They need to provide you the pros and cons of either structure to a level where you understand it.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
It usually doesn't cost anymore unless it's also an Interest-Only ARM. As long as you understand the primary disadvantage, which you stated, the decision is yours. .... Happy funding, Rudi
- Lewis Poretz, "High Quality Advice"
- Contributions:219
The one disadvantage you mention above is why I always, always, always recommend a fixed rate these days. If there is a remote chance you will be in your house 5+ years.... don't do it... it is almost a non decision... just my .02 cents
- wayne lancaster, "funds2"
- Contributions:1165
Without knowing the loan amount, value of property/sales price, credit score, State, and how long you plan on owning the property, it is impossible to make a comparison. Closing cost though should be the same.
5/1 arm or 30 year conventional?
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