I am thinking of doing an ARM on a jumbo loan, even though I plan to stay in the house for more than the time of the loan. 30 year fixed on a jumbo are about 4.5% + but a 5/1 ARM is 3.125% and a 7/1 ARM is 3.5% This makes a huge difference on a loan but in the 6th (or 8th year), they add another 2 pts. So it can go to 5.125% or 5.5% after the ARM is up. There is a maximum of 5 pts throughout the life of the loan. So does that mean in the 7th (or 9th year) they add another 5.125% + 2 pts = 7.125% (5.5% + 2 pts = 7.5%)? Then another 1 pt in the final year?
Anyone do this vs the 30 year fixed who plan to stay in the house for 10+ years?
Anyone do this vs the 30 year fixed who plan to stay in the house for 10+ years?