Quote:
Originally posted by onewhippedpuppy
What's the overall opinon of a 30yr/ 5 fixed ARM? Will the rate go up drastically after that five years?
|
30 yr - long term
5/1 ARM - don't plan to own for more than 5-6 years
The spread between the 5/1 ARM and 30 yr fixed is small now, so the savings are minor compared to the risk of a rate increase at year 5. Whether the rate goes up drastically depends on the mortgage. I've heard the cap can be huge (3-4%) in some cases.
There are certainly other products out there you might consider, like the Interest Only, but I would only do this if you can exercise strict discipline.
You should pull your own credit score, as suggested earlier, and then talk to a few lenders (try your local bank or credit union). Get referrals from friends/family.
good luck, jurgen