All,
Through a corporate relocation I have the opportunity to secure some extremely low interest rates on ARM products as follows:
7/1 ARM - 2.25%
10/1 ARM - 2.75%
I have no idea when my next relocation will be if ever as I am in my mid-40's and have relocated to corporate headquarters. I am inclined to go with the 10/1 ARM as if I am here longer term and have to refinance it will be on my own with no buy down from my company. Since rates are this low and not going much lower then this then it probably makes sense to lock it up for the extra 3 years. When that refinancing day comes or if I move I won't see rates like this again.
I am borrowing $270,000.
Which does the forum recommend the 10/1 or 7/1? I just found this forum and I have to make the decision with my lender on Feb. 24th.
Using the spreadsheet I show the 7/1 as upside down in year 8 if the loan interest rate jumped the maximum of 5%. I am comparing the 10/1 ARM to the 7/1 ARM and have modified the spreadsheet as such. I am not even looking at the 30 year fixed as an option as the best rate I had on that was 3.75%. Longest period of time I have ever been in the same home is 12 years.
Through a corporate relocation I have the opportunity to secure some extremely low interest rates on ARM products as follows:
7/1 ARM - 2.25%
10/1 ARM - 2.75%
I have no idea when my next relocation will be if ever as I am in my mid-40's and have relocated to corporate headquarters. I am inclined to go with the 10/1 ARM as if I am here longer term and have to refinance it will be on my own with no buy down from my company. Since rates are this low and not going much lower then this then it probably makes sense to lock it up for the extra 3 years. When that refinancing day comes or if I move I won't see rates like this again.
I am borrowing $270,000.
Which does the forum recommend the 10/1 or 7/1? I just found this forum and I have to make the decision with my lender on Feb. 24th.
Using the spreadsheet I show the 7/1 as upside down in year 8 if the loan interest rate jumped the maximum of 5%. I am comparing the 10/1 ARM to the 7/1 ARM and have modified the spreadsheet as such. I am not even looking at the 30 year fixed as an option as the best rate I had on that was 3.75%. Longest period of time I have ever been in the same home is 12 years.