30 year FRM or 5/5 ARM? Which is better?

I would say to take the 30 year fixed option if you plan on being in the property for 10 years. It will also depend if you will pay if off. As for buying down the rate you should be able to find a better option then what has been offered to you.

Paying two points to lower your rate 0.25% is probably not a good decision. the payback or breakeven period is over 11 years. That means it will take you 136 months just to get your initial $9K back. If your time horizon in this home is 10 years or longer, I would recommend the fixed over the ARM. We really do not know where rates will be in 5 years, but I would bet a pretty good chunk of $ that they will be higher than today. The gamble is if your rate the second 5 years eats up the savings of the first 5 years. My general advice is you should never gamble in an ARM if your probable time line is more than 2 years past the initial rate change.

Fixed rate mortgages are better options at this moment. If you planned on selling the home in a shorter period of time, I would suggest the ARM for the savings. In this case once you add in the cost of refinancing and starting your amortization clock over for 30 Years in year 5 the savings are wiped out. We're located in Kennesaw, and although I don't know the rest of situation you may be able to qualify for a lower rate with no points. If interested in a no cost, no obligation quote feel free to give us a call 888-288-4467. Jason : )

Hi DanielIf you are go to live in the house more than 5 years take the 30 year fixed rates are too good to let them passLet me know if you need another estimateRegards

I would recommend the 30yr fixed rate. With the way the market is, you have no idea where the housing market will be in 5 years. I also would shop around that rate. You may be able to do a little better than what was quoted. You can contact me if you would like another quote. We do not charge any fees to our clients until the loan closes.Sincerely,Nick RappleanSenior Loan Officer678-486-7801 Direct

My advice is that you go with a 30yr fixed and don't pay points. We can offer a 30yr fixed today at 3.875% with 0 closing costs today. Give me a call at 770-971-7880 for a quote.Regards,Ron Byrne