which loan?
I plan to put 40% down on the house and paid off in the next 2 to 4 years. I will be borrowiing around $110K, and there are no prepay penalties with the ARM as of right now at 3.5%. I was just wondering what my best bet would be and how I should go about this. My credit score is between 750-770 depending on company, and I own an additional home that is currently being rented. Any advice would be appreciated. by jackso_576 from Surprise, Arizona. Aug 1st 2011
JENNIFER URANGA (JennatAmerifirst)
#43 ranked lender in Arizona - 40 contributions
If you know for sure that you will be paying off the mortgage within the next 2-4 years I would put it on an ARM. A 5 year ARM would be best for your purchase.
Bob McCormick (BobMcCormick)
#51 ranked lender in Arizona - 5 contributions
Is this for a new purchase loan or to pay a lump sum of 40% on your current loan? I assume that the 3.5% rate is for a 7 year arm? as 5 year rates are lower. Either way, my advice is to make sure that you are confident that you can pay off the loan within the fixed ARM period and/or have back up savings for security. Great idea though to want to accelerate the payoff! ThanksBob McCormick, President www.mccormicklendinggroup.com
Barrett Stokes (barrett)
#46 ranked lender in Texas - 25 contributions
My advice would be 40% would surely eliminate MI, and with planning to payoff in 2-4 years take the ARM that is locked in higher term than the time you plan to payoff. Do not get me wrong I said higher term not rate! Your options are 3, 5, 7 or 10 year ARM take care.
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