5/1 arm or 30 year fixed?

berettafan002 · Joined: 06 Feb 2008 Posts: 9 6.64 Dollars($)

which is more advantageous...? Also, interest only or interest/principle payment and can we refinance with 5/1 arm mortgage later?

750k loan
10-15% down
fico 650-680
Location: nevada

what kind of rates am i looking at ..thank you

ckalvesmaki · Posted: Thu Feb 07, 2008 7:46 am Post subject:

Do you know what your actual mid score is? There is a pretty big spread on rates depending on the mid score being 650 or 680....also..15% may be required if you are buying Clark county becuase it is a declining market. Is this full doc or stated? What do the reserves look like?

evolovik26 · Posted: Thu Feb 07, 2008 7:52 am Post subject:

Full doc or stated>? there is a big difference beeetween 680 and 650 scores. Also a big difference beetween 10% and 15% downpayment.
The range you giving is really wide and there are alot that can happen in that range.
If you going full doc, with 680 scores and 15% down you can get some of the better rates on the market for both 5yr fixed and 30yr
If you going stated with 650 score and 10% downpayment if there is something else that you not telling you might be hard pressed to get a loan in the first place.
As far as 5yr vs 30yr fixed my preference is 5yr fixed cause you can get about a 1% better rate with it which on Jumbo loan like that can mean a big difference. You will have to refy in 5 yrs time though.

0.10 Dollars($)

i am in full agreement with eugene - there is a vast difference between 650 and 680 scores; as well as with down payment amounts.

i think i also agree on the 5/1 being a good fix for the loan, inasmuch as you can save a goodly sum of money in that first five years resulting from the rate.

berettafan002 · Joined: 06 Feb 2008 Posts: 9 6.64 Dollars($)

is there a difference in interest rates for them?

ckalvesmaki · Posted: Thu Feb 07, 2008 9:04 am Post subject:

yes......the 5/1 ARM will be anywhere form .5-1% lower depending on some variables.

jeffselan · Posted: Thu Feb 07, 2008 7:07 pm Post subject: Well,

From a different angle. All other points aside, how long do you plan to be in the home?

Do a break even analysis on how long it will cost you to recoup the refi fees if you plan on being in the home more than 5 years.

Might not be as good a deal as you think.

Then again, it might.

I suggest you talk to a lender and figure it out in detail.

All times are GMT - 7 Hours

Page 1 of 1