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ARM or another 30 year?

Looking to sell my current home within the next 5 years. My current 7 year arm is up in 1 year. at that time should I go for another ARM? or a 30 year fixed? or something else? by marty837 from San Dimas, California. Sep 1st 2010 Reply


Ron Pippin (RonPippin)
#27 ranked lender in Utah - 158 contributions

There is only about 1% difference in rate between the 5 /1 ARM and the 30 year fixed rates. Too many times people opt for an ARM and then plans change. Take for example your current situation. You opted for a 7/1 ARM and now you are thinking about ANOTHER 5 years. Unless you have rock solid plans to make the move in that amount of time, I would still recommend a fixed rate. With interest rates at all time lows right now, you would be safe with an incredibly low rate, fixed payments and without the worry of another ARM adjusting in the future.

Sep 1st 2010
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Patrick Bodine (pbodine)
#11 ranked lender in Minnesota - 25 contributions

With the uncertanty of our market today nobody can predict what rates will do in the future.unless you are sure you will sell your property in the time aloted ,and with fixed mortgage rates at an all time low ,I would sugest a fixed rate mortgage ,but there are alot of variables to look at.If you seek more information you may contact me at pbodine@bncnationalbank.com or 612-305-2284.Thank you and have a great dayPatrick Bodine

Sep 2nd 2010
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Crestico Funding (CresticoFunding)
#313 ranked lender in California - 340 contributions

If you are 100% positive you will sell your property within the next 5 years get a 5 year ARM but just to be on the safe side i would recommend a 10/1 ARM.Feel free to contact us for more information on Rates and Closing Cost included for Refinancing Houtan HormozianHoutan.Hormozian@Cretico.com949 242 5215

Sep 1st 2010
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Rob McAllister (Rob McAllister)
#6 ranked lender in Washington - 48 contributions

Marty. Rates on the 5 year ARM are super low right now. I would say go with the ARM if you are the type of person that sticks with their plan, but I agree with the other answer...you may want to go with a 7/1 ARM to allow a little extra time in case the market is slower to recover than you anticipate. The 10/1 ARM isnt much lower than a 30 year fixed so I dont know if the added risk of an ARM is warranted with that product, but I agree with the general idea from the prior response...give yourself a little more time just in case.

Sep 1st 2010
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- - (Voted.Best.Rates.and.Service)
#11 ranked lender in New York - 374 contributions

With the current economy and future uncertainty. I would suggest getting a 30 year fixed, 15 at the least.

Sep 2nd 2010
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Todd Tholl (toddtholl@leader1.com)
#4 ranked lender in Iowa - 239 contributions

Fixed rate sounds like the best way to go for you in your current situation. Your home may not sell right away as there is a plethera of homes for sale in the market currently.

Sep 2nd 2010
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