2006-08-24 05:12:40 · 6 answers · asked by Richard B 1 in Business & Finance ➔ Personal Finance
I wouldn't. Rates are still very low and will only continue to rise in the near future. I would get a 30 year fixed and be glad.
Good luck!
2006-08-24 05:15:57 · answer #1 · answered by personal_finance_101 3 · 0⤊ 0⤋
ARM rates are generally lower than fixed, but not by much. Usually around .25 to .50 %. Unless you're buying a very expensive house, this probably won't make a huge difference in your monthly payment.
Unless you will be saving a significant amount of money every month with the lower ARM rate, I suggest going with the security of a fixed rate. With an ARM, you will be forced to refinance once your rate starts adjusting and your payments go up. If you go for the fixed rate, you can still refinance, but you will not be forced to.
2006-08-24 14:39:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Even though rates are low right now (for Fixed), it may be that you can't the get that rate. Possibly. In that case, you can start off with an Arm because usually Arm rates are a little lower than Fixed. Then, in about two years, refinance and try for a Fixed rate.
2006-08-24 05:20:43 · answer #3 · answered by Scott D 5 · 0⤊ 0⤋
Investing in a home (I assume you are buying a home) is one of the best investments you can find. Not only will it probably make you a profit if you sell, you can use it (live in it) all the while you own it. I bet you can't name 3 other investments like that. A business where you live on the property is one.
My mortgage advise is to shop around. There are hungry mortgage agents waiting to provide good advise on what types of mortgages are available. Shop around.
2006-08-24 05:28:32 · answer #4 · answered by James S 3 · 0⤊ 0⤋
Only if you know for sure that you will move and sell the property before the lock period expires. Fixed rates are still very low but are climbing.
If you remain past the lock period you may be hit with breathtakingly high payment increases when the rate starts adjusting.
2006-08-24 05:20:55 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
No . . rates are low right now . . why not get a standard loan?
2006-08-24 05:13:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋