Is a 5yr fixed mortgage loan a good choice?

Question

I want to consolidate all my bills, would this loan be good for me? Any other suggestions?

Answer 1

Wait, is it a 5 year loan, or is it a 30 year loan with a 5 year fixed APR and after that its an ARM (adjustible rate mortgage)?

If you plan to stay in your house a LONG time, a 5/25 year ARM loan is not your best choice. Rates have been steadily but slowly climbing-- in fairly recent history, they've been as high as 8-14%! If you are thinking long term, a 30 year fixed is a better choice.

If you KNOW you will be moving in 1-5 years, the arm is a good, cost saving technique.

Answer 2

Are you talking about a 30 year ARM with a 5 year lock? If so, make sure you'll be able to either re-finance before the lock expires or sell before then. If rates keep moving upwards, you could get hit with huge increases when the lock expires.

Or are you talking about a 5 year baloon with a 30-year amortization schedule. If so, make sure that you will be able to re-finance when the baloon is due. If you can't qualify for a loan to pay off the baloon payment you'll be forced to sell very quickly.

If you're talking about a fully amortized 5-year mortgage loan and can make the payments then it's probably a great idea.

Just be sure you're signing what you think you are signing. Many people have been taken advantage of when they didn't read all of the fine print.

Answer 3

Thats a very good idea. Look around at different banks, and get the lowest interest rate that you can. Be careful for hidden fees, and I think you will be glad that you did it. After 5 years all your bills will be paid. That's a great feeling, knowing that you do not owe anybody any money. good luck..

Answer 4

Amazed that I found this topic already answered! it's like you've read my mind!

Answer 5

Everyone has their own opinion, but I don't think so

Answer 6

yes