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What is the best type of short term loan. 3/1, 5/1 or 7/1? I hear 5/1 is the most common?

by trhgb32264 from Farner, Tennessee. Feb 22nd 2018 Reply

Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 232 contributions

It depends on what your long term plans are? Once you decide this then it will be easier to direct you which way to go! If that makes sense!

Feb 22nd 2018
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Every one is different because everyone's needs are different.. If you know for certain you will be moving in 3 to 4 years, then a 5/1 ARM would be ideal.. But if you know you will be there for 20 years, then maybe none of these options are for you.. Without knowing your short and long term plans, it's difficult to advise you.. However, when it comes to loan pricing, most all 3/1 ARMS are priced the same as a 5/1 ARM, which is why they are the most popular, and Most 10/1 ARMS are higher than fixed rates, which is why this is the least popular. The 7/1 ARM will be slightly lower than a 5/1 ARM, but whether or not it makes sense is up to each individual. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Feb 23rd 2018
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