Purchase price:800K Loan Amount: 640k 10ARM 2.375 = 2419$ 30yr fixed 2.875 = 2655$ 236$ every month difference seems huge for me but it is ARM. I don't know how long will I stay in the property but will do 5yrs atleast. Lender : LoanDepot Thoughts ? Location : Seattle TC:265K
If this is temporary housing then do ARM. If permanent, 30yr ARM. Historically, mortgage rates have only gone down and you can always refinance.
Uhh, what lol
Isn't this kinda true? If i know I'll sell in 5 years, won't ARM make more sense because my new house will be loaned at the rate at that time. So effectively even if I did 30 year, it'll still end up being ARM. And since ARM is lower rate, it is better for this scenario.
Arm
ARM! You don't know what rates will be in future, save what you can now. Lots of people were saying rates have hit rock bottom 2 years back and converted to 30 yr fixed. Guess what, rates dropped again last year. You will most likely sell the house in 10 years to move to a bigger house or to move closer to your new workplace( don't buy into airbnb for life crap), or will relocate to a different city. You might also pay off loan with in 15 years, reducing the savings with 30 yr fixed a lot assuming rates do go up 1% or more at 11th year.
That’s very 2007 of you.
You can refi to 15 years fixed after 10 years.
Was in same spot 3 yrs back. I thought we'll move out in few yrs, went for 5ARM rate. Refinanced after 1yr to get a better rate. Refinanced again recently for even better rate.
Closing costs for the refinance?
No closing cost in either refinance.
10ARM but make the monthly payment as if 30Fixed. Your Principal will reduce faster.
Be safe with a 30yr fixed.
Can I know how much was purchase price
800K
Thanks, I am curious to know how big is the home, coz it’s difficult to get a home for 800k
Don’t play games. You will be suprised how fast time flies, and what if interest rate hits 20% after 10 years?
That would imply hyperinflation, by which time the 640k principal will become much less valuable as well.
Ah no, interest rate increase doesn’t always mean hyperinflation, fed is able to manipulate the market