Curious to see what the thought leaders here at Blind are recommending these days. 😁 Got a quote for 10 year ARM which is 0.375% cheaper than the 30 year fixed and 7 year ARM which is 0.5% cheaper. Not sure how long we will live in the house. We're planning to be here for the long term but historically never lived anywhere for more than 3 years and the house in question is very different than other places we lived in and I'm not sure if we will like that. #mortgage #housing
7/1 ARM is my way to go
Arm
The downside of ARM is that some scenarios have you being forced to sell. Otherwise you’ll probably be fine.
Best decision I took was 30 year fixed with 2.25% Relationship discount makes such rates possible This was june 2021
OP, when I bought few years ago, the 30 year fixed mortgage rates were around 4%, and we got a killer deal for jumbo 7/1 ARM (2.625%) by getting 2 banks to compete. Last year, when rates were at historic low, we managed to do a cash out refi (combining a HELOC) at 2.625%, 30 year fixed. So, I managed to keep the same low rate, now fixed for the lifetime of the loan. Moral: go for a 7/1 ARM. When rates turn lower (which they might in a few years as the economic cycle turns), then refi into 30 year fixed if you intend to stay long term in the house. Else, sell and buy something better
This is a great advice
Yes. We did exactly the same. Refi last year at 2% for 10 yr fixed.
Arm is the best option no matter what the rates are. If you want a bit more certainty then go for 10 arm instead of 7 given it’s only 0.125%. 10 years is such a long time that you will be in a completely different financial position assuming you continue to work in tech.
30 years is for the “pay and dont want to think about it” crowd. ARMs are better if you actively manage your portfolio and have plans setup.
Get 7 ARM