Payton
February 4, 2025, 3:42am
1
Hello, for the loan amount of $809k on a $1.079m house on new construction, the builder is offering 2 options:
4.99% for 30 year fixed
4.99% 5 years ARM + closing costs ($13k) + 5 months HOA ($2k)
Which option should I select? I’m not sure how long we would be staying in this house. What makes the most sense?
Zee
February 4, 2025, 3:42am
2
Where the hell are you getting 4.99%???
Payton
February 4, 2025, 3:42am
3
Zee said :
Where the hell are you getting 4.99%???
It’s a builder incentive on new construction, and they have already inflated the house price.
Zee said :
Where the hell are you getting 4.99%???
New constructions always have favorable rates.
Piper
February 4, 2025, 3:42am
5
Based on the last 2 weeks, I would avoid an ARM. Several economies are becoming very uncertain. Expect higher building materials and labor costs for the foreseeable future. Good luck.
Caiden
February 4, 2025, 3:42am
6
For me, option 1, by a long way.
In my opinion, fixed is always less risky, especially in the US. You never know which way the rates are going to go.
Juno
February 4, 2025, 3:42am
8
Fixed. If it was a 10-year ARM, then maybe that, but go with fixed to keep your mind at ease.