10/1 Arm vs 30 year conventional

[krrish]

Maa lender gadu Arm ki 3.25% and conventional ki 5.25% undi…so, easy ga 7/1 arm or 10/1 arm teesukovacha…within the next 7-10 years refinance cheyyachu or house sell cheyyachu kada….but still conventional is popular…am I missing anything? DB experts, throw some light? This is urgent 

[tennisluvrredux]

If you are getting 3.25% happily close eyes and go for ARM. 10/1 is better than 7/1 but even 7/1 ochina not bad at that interest rate. 

Don't worry about conventional loans, sometimes you get lucky like people did last year but won't work every time. 

[gutlogummadi]

In these situations ARM is better. 10yrs lopu chuskovachu

[bayarea]

15 minutes ago, krrish said:

Maa lender gadu Arm ki 3.25% and conventional ki 5.25% undi…so, easy ga 7/1 arm or 10/1 arm teesukovacha…within the next 7-10 years refinance cheyyachu or house sell cheyyachu kada….but still conventional is popular…am I missing anything? DB experts, throw some light? This is urgent 

ante you are betting on that interest rates will come down for you to refinance in next 10yrs. inka individual risk profile batti untundi whether to take risk or go conventional 

[Katti_Ramdas]

6 minutes ago, bayarea said:

ante you are betting on that interest rates will come down for you to refinance in next 10yrs. inka individual risk profile batti untundi whether to take risk or go conventional 

We can refinance at any point of time kada..

[pandemkodi]

Who is the lender 

[krrish]

Local credit union bhayya…

[krrish]

Closing cost kuda cover chestadanta with 3.65% interest rate 10/1 Arm ki…

[bayarea]

3 hours ago, Katti_Ramdas said:

We can refinance at any point of time kada..

yeah refinance any time in next 10yrs but double check with lender as sometimes there might be some restrictions

[Simple123]

3 hours ago, krrish said:

Maa lender gadu Arm ki 3.25% and conventional ki 5.25% undi…so, easy ga 7/1 arm or 10/1 arm teesukovacha…within the next 7-10 years refinance cheyyachu or house sell cheyyachu kada….but still conventional is popular…am I missing anything? DB experts, throw some light? This is urgent 

kallu muskoini 7/1 arm tesuko

[30_Years_Industry]

4 hours ago, krrish said:

Maa lender gadu Arm ki 3.25% and conventional ki 5.25% undi…so, easy ga 7/1 arm or 10/1 arm teesukovacha…within the next 7-10 years refinance cheyyachu or house sell cheyyachu kada….but still conventional is popular…am I missing anything? DB experts, throw some light? This is urgent 

2% difference in interest rate ante monthly payment will differ by $180-$210. So go for Arm for now and then refinance later if you think you will stay in the same home for few more years.

[30_Years_Industry]

4 hours ago, krrish said:

Closing cost kuda cover chestadanta with 3.65% interest rate 10/1 Arm ki…

Lenders will entice with such offers. Before you decide, ask how much will be the closing costs and calculate how much you will end up paying for 0.4%(3.65%-3.25%) in 10 years.

[krrish]

47 minutes ago, 30_Years_Industry said:

Lenders will entice with such offers. Before you decide, ask how much will be the closing costs and calculate how much you will end up paying for 0.4%(3.65%-3.25%) in 10 years.

It will take nearly 7 years for break even