Which Loan?

If you will stay in your home for 10 years or less, take the 5/5 ARM. Either one is a bargain. due to the current very low rates.

I would need more info. How long do you plan on staying in the home? What are your short term/long term goals. Rates are very low now, but everyone agrees they will eventually go up. Call us or email us at 201-962-3555 or Team@BestMortgageOption.com for ano cost no obligation analysis of your situation.Ask for Michelle or Benny We will find the Best Mortgage Option to suit your needs!You can check us out at www.BestMortgageOption.com

It really depends on what your end out plans are and if you go with the ARM are you going to pay that difference to the principle. ARMs are GREAT programs if you are diligent enough to pay the extra towards the principle and not new Jet skii's. Also, if you think you won't do ANYTHING with that house in the next 7-10 years then the fixed is the way to go, but if you think you will refinance or move at all then definitely go with the ARM.

Call the loan officer at PenFed and request this information. They should be delighted to put everything on paper for you. Most of us have a form that will allow you to compare loans side by side. Once you get your estimates in writing you will be able to compare and make an informed choice.

Any good loan officer will be happy to answer all these question, and take the time to crunch numbers based on your individual wants, needs, and long-term or short-term payment and equity objectives. The best person to help you is someone with your full application. They should be able to provide you with different options, and the break even time frame. I noticed you mentioned you were working with a Credit Union. As a Credit Union, their Loan Officers are NOT required by any State or Federal rules to be licensed, and are generally more of just an application taker versus a true professional Loan Officer. The fact you are asking here gives me further indication you are not getting the answers you desire. Credit Unions are OK, but they don't have anything to offer that is better than you can get somewhere else. My opinion is you are better off working with a local California Mortgage Broker, someone you can go sit down in their office to ask these questions, rather than online with some clerk in VA. Good luck.

Your questions are very good and this is definitly information you should get before making your choice of a mortgage. Tell the Officer you're working with that you want a Total Cost Analysis. It's a fabulous analysis tool that will make if very clear what you best choice is given various scenarios. If your Officer can't provide this information...find one who can!