So we're getting there! But we have mortgage questions, AGAIN!

We are in the beginning steps of a 1 bedroom co-op endeavor. We can't sublet so it can't be a second home, but plan on staying there for 5 years. There is enough room for a baby/toddler. Once a baby is about 3, we plan on going for a larger place. So now, we are just trying to figure out what kind of mortgage to take out.
What KIND of mortgage did you take out and why?

30 year fixed?
5/1
7/1
10/1

Are you paying principal and interest or interest only for now?

Re: So we're getting there! But we have mortgage questions, AGAIN!

personally if you aren't staying in there long term...I think it is foolish to pay the interest for a 30 year fixed...


think hard about a realistic time to be there...add one year and look for that ARM


also our first place was a huge one bedroom...once I got PG - what we thought would be big enough wasn't at all...babies have SO much stuff for such a little person

Re: So we're getting there! But we have mortgage questions, AGAIN!

ARM rates are currently very close to 30 year fixed.

The only time you will really get a decent enough of a discount with ARM is if you go 3/1 or less years.

7/1 will almost give you the same rate as a 30yr fixed. So i would go with the fixed personally.

Re: So we're getting there! But we have mortgage questions, AGAIN!

We took out a 30 year fixed..

Re: So we're getting there! But we have mortgage questions, AGAIN!

we did the 30 year fixed and stayed in the townhouse only 3 years. i hear the ARMs are going up and the fixed rates will follow.

Re: So we're getting there! But we have mortgage questions, AGAIN!

30 fixed and put a little extra towards the principal each month.