It is a 30 year/5 year ARM
10 year ripping and a tariff comment from Trump today. It’s like they’re reading the comments here. ARMs aren’t a horrible thing, but make sure you fully understand worst case scenario with them.
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When I got my mortgage on 23 it was either more than 8% at 30 year fixed or low 7s% with 5y ARM…
I was sure I’d refin within the first 5 years, so it was the most economical choice.
ARMs are one of those things that should work. They do most of the time. In rare cases, they don’t, and folks lose their homes. If the risks are understood, they can be good credit vehicles. They’re certainly the ones banks make the most money on.
I just got a primary residence 7/1 ARM at 5.25% locked for 7 years. Afterwards its 1-year USB + a margin reset every year. I thought it was worth it considering 30 year fixed was atleast >1.00% higher.
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I’d probably roll those dice, so long as fees/points were minimal. I’d refi into a 30 year fixed if rates reached 5.25% or better at any point in those 7 years though. Keep credit files clean. Should better rates come, it’s going to come with very tight underwriting.
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That’s a great rate. Where are you located?
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That’s a smoking deal mind sharing the lender?
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Would be interested to know the lender as well
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Bucks county, PA. The lender is first national bank and trust of Newtown.
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Credit union honored the “no fees” offer and introductory rate but increased the standard rate to prime plus 1/4 point (after discount). I will probably still follow through; I was mostly interested in the intro rate.
I guess the question now is… do I use all this capital to buy into the Trump bump.
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Is this on a primary or on investment prop
Primary home, but program was the same for investment property.
Has anyone had a good experience with a CU for an HEL where there is an option for a balloon type of structure? My 10 yr ARM comes due in 5 years and I am thinking of paying interest in the short term then consolidating and refinancing at the same time.
Check some of the Axos offerings. An interest only mortgage is one of their options.
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