@Hollis
Yeah, honestly it sounds like from what you’re telling me, by the numbers, ARM is a pretty good bet, but it sounds like you’re really not the betting type, based on your reserves. Get a fixed rate and just live your life. You can’t put a price on peace of mind.
I took the ARM for a 25 BPS difference from the 30 year this spring. Then I refi’d into a 15-year for 1% lower in August.
Afton said:
I took the ARM for a 25 BPS difference from the 30 year this spring. Then I refi’d into a 15-year for 1% lower in August.
That’s the dream, but without getting political, the environment for the next few years seems rather unpredictable.
@Hollis
I hear you. I would do it as long as you have sufficient income to switch to a shorter-term loan sometime in the next couple of years, since shorter-term will cancel out some of the interest rate risk. I think people tend to overstate the risk from ARMs and interest-only products because of the way they were used to qualify people who wouldn’t otherwise qualify back before the GFC.
Just take the 30-year fixed, you’ll likely be able to refinance into something better, but worst-case scenario, you’ll be able to keep the rate long term. Why gamble with your mortgage for 0.5%?
Well we know where some of that points fee went… Over 3k in processing and UW lol ouch.
Sky said:
Well we know where some of that points fee went… Over 3k in processing and UW lol ouch.
Only 1542 in processing, the 1800 is the 1/8 point buy-down.