loan help.. arm vs fixed

[zixxer]

We're talking about a 145-150k loan.

He pushed the ARM loan very strongly.. basing off the fact that at my age (21) chances are that I will move in 5 years (he's probably right..) and for sure by 10 years.

He mentioned an "80/20 arm loan" my payments would be $~1050 for the first 5 years. It becomes adjustable after that.


Opinions? The fixed rate I'm sure would be a higher montly, that I'm really sure I can handle at the moment.

 

[MikeyIs4Dcats]

I'd go with the fixed due to the current climate...I expect rates will continue to climb for the forseeable future.

 

[MikeyIs4Dcats]

oh, and go ask at FW Finance...they know more about that kinda stuff.

 

[dullard]

You have to answer three questions for us to give advice.

(1) What is the difference in the interest rates between fixed and and ARM?
(2) Honestly, how long will you stay there. 5 years is the average length of time for first-time home buyers. But, will YOU stay there 7, 8, 10, + years?
(3) Are there any major closing cost differences?

Helpful but not necessary questions:

(4) How much can the ARM vary in the first year and following years?
(5) Will you have the willpower to roll your ARM savings back into those loans? Or will you do as most do and blow the temporary savings?

 

[MBony]

If you plan on moving go with the ARM.

 

[captains]

fixed.....u plan on moving in 5 - 10 years, but you will only know for sure if this is actually gonna happen when the time comes.

 

[zixxer]

Originally posted by: captains
fixed.....u plan on moving in 5 - 10 years, but you will only know for sure if this is actually gonna happen when the time comes.

well that's true.. but I'm just saying 'chances are'.... I would bet on myself moving by 5 years. i have no kids, the company i work for is being bought out (buying company will have full control in 2008).. chances are that will mean a job change for me, whether moving across the country to the parent companies location or elsewhere

 

[zixxer]

ok im supposed to get the info you guys want tomorrow morning



Thanks for the help!!