Skip to main content

Another 30 fixed vs. ARM question.. 10/5 with caps 3/3/6

Facts:

Fixed 30 years at 4.75% vs. 10/5 3/3/6 at 3.675% with a point By the 15th year you would have paid off more balance with the ARM than the fixed with just about the same total payment.

The way I look at it, I’m betting that one of the three happens in the next 15 years:

  1. Refinance to a 15 or 20 fixed. Mortgage rates calm down to a mid/high 3 with enough savings to cover refinancing closing cost.
  2. Investment made with the savings (monthly payment difference between ARM and 4.75%) returns enough to refinance and/or recast
  3. Refinance with another ARM to buy time
  4. Move out

At about 700k loan, the savings alone represent 45-50k at zero compounding int. You also would have paid off more of the loan.

Thoughts?

submitted by /u/eujenio8484
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/ubg9vw/another_30_fixed_vs_arm_question_105_with_caps_336/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Looking for Prospective Opportunities to Utilize Floor Plan Redraw Skills

"Hey HomeOwners & Investors , I have a team of 10 professionals who are trained in redrawing/redesign floor plans in both 2D and 3D interior& exterior using floorplanner.com/3ds Max and TruView point cloud. We're looking for prospective opportunities to utilize our skills. Are there any companies or individuals in need of accurate floor plans and measurement reports ? Any suggestions for where to start looking? Thanks in advance for your help!" submitted by /u/mangojuicelife [link] [comments] source https://www.reddit.com/r/RealEstate/comments/119uoh0/looking_for_prospective_opportunities_to_utilize/
Post a Comment
Read more