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Company Loan Type APR Est. Pmt.

5/1 arm or 30 year fixed?

Posted on: 07th Feb, 2008 06:33 am
which is more advantageous...? also, interest only or interest/principle payment and can we refinance with 5/1 arm mortgage later?

750k loan
10-15% down
fico 650-680
location: nevada

what kind of rates am i looking at ..thank you
Do you know what your actual mid score is? There is a pretty big spread on rates depending on the mid score being 650 or 680....also..15% may be required if you are buying Clark county becuase it is a declining market. Is this full doc or stated? What do the reserves look like?
Posted on: 07th Feb, 2008 06:46 am
Full doc or stated>? there is a big difference beeetween 680 and 650 scores. Also a big difference beetween 10% and 15% downpayment.
The range you giving is really wide and there are alot that can happen in that range.
If you going full doc, with 680 scores and 15% down you can get some of the better rates on the market for both 5yr fixed and 30yr
If you going stated with 650 score and 10% downpayment if there is something else that you not telling you might be hard pressed to get a loan in the first place.
As far as 5yr vs 30yr fixed my preference is 5yr fixed cause you can get about a 1% better rate with it which on Jumbo loan like that can mean a big difference. You will have to refy in 5 yrs time though.
Posted on: 07th Feb, 2008 06:52 am
i am in full agreement with eugene - there is a vast difference between 650 and 680 scores; as well as with down payment amounts.

i think i also agree on the 5/1 being a good fix for the loan, inasmuch as you can save a goodly sum of money in that first five years resulting from the rate.
Posted on: 07th Feb, 2008 07:32 am
is there a difference in interest rates for them?
Posted on: 07th Feb, 2008 07:55 am
yes......the 5/1 ARM will be anywhere form .5-1% lower depending on some variables.
Posted on: 07th Feb, 2008 08:04 am
From a different angle. All other points aside, how long do you plan to be in the home?

Do a break even analysis on how long it will cost you to recoup the refi fees if you plan on being in the home more than 5 years.

Might not be as good a deal as you think.

Then again, it might.

I suggest you talk to a lender and figure it out in detail.
Posted on: 07th Feb, 2008 06:07 pm
I'm confused and need some feedback. I'm going to refi on my home loan, I have score of 771 and when I bought my place last Sept, I put 20% down. My loan amount is around $131K. I can get a rate of 4.875% for approx $926 on a 30 yr and then I can also get a rate of 4.625% for $905 payment on 5/1 ARM. I don't see that much in savings by taking a chance and doing the 5 yr. I also don't see myself in my place for 5 yrs or more either. Which way do I go? Help?????
Posted on: 11th Jan, 2009 07:33 am
Hi Lisa,

Welcome to the forums.

I think you should calculate the overall costs of taking out the 30 year loan and the 5/1 year ARM. That is, add the closing costs along with the total interest you'd have to pay for each loan. Then choose the one which requires you pay the least. By the way, are the loans available from the same lender?
Posted on: 12th Jan, 2009 02:36 am
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