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- 7ARM vs 30yr fixed, 255K loan, 0% down.
7ARM vs 30yr fixed, 255K loan, 0% down.
Marcinisko
Contributions: 18
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what do you think of the following scenario. Let's say I can take 7ARM at 5.35 or 30yr fixed at 6.35. Take any amortization calculator and you will see that over 7 years you will pay 90K in interest (7ARM) or 108K in interest (30 yr fixed). so you "save" 18K in interest. Let's say at the end of yr 7th you need to refinance and the rate is 9%...well .. then you pay 4K in closing cost and you can use say 5K-7K to pay points to bring the rate to 6ish level. is it feasible ?
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