| Posted By |
Message |
randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
|
Mortgage-- 10 yr ARM vs 30 yr fixed
Usually an ARM is cheaper than a 30 year right??
|
Posted 10/15/06 8:46 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Mortgage-- 10 yr ARM vs 30 yr fixed
it is lower, but probably not by much.
a 30 year fixed on bankrate is at 5.92%, and a 5 year arm is 5.62% - and a 10 year will be higher than a 5 year.
I would rather get a 30 year fixed and pay a point to lower the rate (i believe points are usually tax deductable, so you can save a little that way)
|
| Posted 10/15/06 8:54 PM |
| |
|
randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
|
Re: Mortgage-- 10 yr ARM vs 30 yr fixed
I was just trying to learn a bit-- trying to get some kind of idea of wha kind of house we could afford once we are ready to sell this place--- which is not for a few years anyway. This is what a full day of HGTV does to me!
|
| Posted 10/15/06 9:02 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Mortgage-- 10 yr ARM vs 30 yr fixed
Posted by randella
I was just trying to learn a bit-- trying to get some kind of idea of wha kind of house we could afford once we are ready to sell this place--- which is not for a few years anyway. This is what a full day of HGTV does to me!
 HGTV is bad news sometimes.
the rate will be lower, but not that much lower. and who knows what rates will be in 10 years? I would rather have piece of mind of a fixed rate.
|
| Posted 10/15/06 9:03 PM |
| |
|
randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
|
Re: Mortgage-- 10 yr ARM vs 30 yr fixed
well- I just figured that based on the market, we'd probably only be able to invest another $100 to $200 than our curent place. But because of that, it will most likely not be a place that we stay in for 30 years.
|
| Posted 10/15/06 9:10 PM |
| |
|
SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
|
Re: Mortgage-- 10 yr ARM vs 30 yr fixed
I personally wouldn't touch an ARM with a 10 foot pole. a fixed rate mortgage would let me sleep at night
|
| Posted 10/15/06 9:22 PM |
| |
|
randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
|
Re: Mortgage-- 10 yr ARM vs 30 yr fixed
well- we have a 5 yr ARM, interest only, now because we know that we will not be here longer than 5 years-- I think if you know that you will not be in a place for more than a set amount of time, you should go for the cheapest mortgage option. I wouldn't do IO again-- cause it wouldn't make sense, but I can see a 10 yr ARM being a good fit to get more house for the same amount of money.
|
| Posted 10/15/06 9:26 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Mortgage-- 10 yr ARM vs 30 yr fixed
Posted by randella
but I can see a 10 yr ARM being a good fit to get more house for the same amount of money.
youre not going to get that much more house - maybe $15K if the difference is a quarter of a point?
$15K or my rate never changing? Id go with the fixed rate, imo
eta : and I completely agree that if you know you wont be there long, get an ARM - but the other side of that is you never know waht the future holds (unless you get a fixed rate!)
Message edited 10/16/2006 7:07:57 AM.
|
| Posted 10/16/06 7:05 AM |
| |
|
bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
|
Re: Mortgage-- 10 yr ARM vs 30 yr fixed
personally, i wouldn't go near an ARM. The potential is there for the interest rate to go up so high that you can no longer afford the house. Maybe I'm overreacting, but that potential makes me really, really nervous.
If you get a 30yr. fixed then yes, you may have a higher rate....for NOW. But the ARM could at one point, become higher than the fixed. And, with a fixed, you get peace of mind. Your salary will go up but your mortgage will always stay the same. So essentially, it will become more and more affordable over time.
|
| Posted 10/16/06 1:01 PM |
| |
|
