Zillow Advice: Mortgage Rates - What is your interest rate for 5/1 IO loan.Thx http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ Zillow Advice | Zillow Real Estate ema1012 asks via email: "I ... http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ ema1012 asks via email: "I have lender offering a 5/1 arm at 5.125% up to 1.5 million. As a prefered advisor, why would you state this?"- in reference to my comment below.<br/><br/><br/><br/>Quite simply, rates for conventional <a href="http://www.zillow.com/30_Year_Fixed_Mortgage_Rates/">30 year fixed</a> <a href="http://www.zillow.com/mortgage/">loans</a> are priced better. Why would anyone offer a 5/1 ARM on a conforming <a href="http://www.zillow.com/mortgage/">loan</a> amount? As Andrew and Greg both state- jumbo loans would be a different story. At those larger amounts, yes, the 5/1 ARM would make sense. So I suppose I should have been more thorough in my original response. 5/1 ARMs, even interest only, make sense for certain people, in certain situations.<br/><br/><br/><br/><br/> Wed, 31 Dec 2008 12:36:00 GMT http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ 2008-12-31T12:36:00Z If your loan amount is over ... http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ If your <a href="http://www.zillow.com/mortgage/">loan</a> amount is over $625,500 then you might want to look into the 5/1. If it's under that amount, you should probably focus on the high balance conforming 30 or 15 year products. As suggested by others. make a quote request here on Zillow. Wed, 31 Dec 2008 05:40:00 GMT http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ 2008-12-31T05:40:00Z If you are looking at Jumbo ... http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ If you are looking at Jumbo Fianancing a <a href="http://www.zillow.com/5-1_ARM_Mortgage_Rates/">5/1 ARM</a> is still attractive over a 30 year fixed.&nbsp; Not so much on the comforming side. Wed, 31 Dec 2008 01:51:00 GMT http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ 2008-12-31T01:51:00Z Located in Cupertino, CA ... http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ Located in Cupertino, CA 95014 Wed, 31 Dec 2008 00:57:00 GMT http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ 2008-12-31T00:57:00Z socal- no idea that was accurate- ... http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ socal- no idea that was accurate- very interesting! thanks :) Wed, 31 Dec 2008 00:48:00 GMT http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ 2008-12-31T00:48:00Z Jennifer,Based on the location ... http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ Jennifer,<br/><br/>Based on the location metadata for the OP, I'd say Cupertino, CA (see "little blue text" at top of thread).<br/><br/>Right now, this is not necessarily 100%, but it seems to be fairly reliable. Wed, 31 Dec 2008 00:28:00 GMT http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ 2008-12-31T00:28:00Z Great answer Sherri- no one ... http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ Great answer Sherri- no one would want a <a href="http://www.zillow.com/5-1_ARM_Mortgage_Rates/">5/1 ARM</a>, interest only or not, right now. Just not worth it.<br/>Out of curiosity though, where are you located v_hadap?<br/> Tue, 30 Dec 2008 23:19:00 GMT http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ 2008-12-30T23:19:00Z v_hadap, set up your scenerio ... http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ v_hadap, set up your scenerio in a "Loan Request".&nbsp; That way, <a href="http://www.zillow.com/directory/lenders/">lenders</a> from your area can quote you the best rates.&nbsp; I can say, however, that a 5/1 IO ARM will be much higher than a 30 year fixed.&nbsp; Fannie and Freddie, along with investors, have priced them out of the market.&nbsp; Good luck to you! Tue, 30 Dec 2008 23:05:00 GMT http://www.zillow.com/advice-thread/What-is-your-interest-rate-for-5-1-IO-loan-Thx/182930/ 2008-12-30T23:05:00Z