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30 FRM cheaper now than 5 yr ARM

On several ratesheets now I am seeing the 30 FRM priced cheaper than the 5 yr ARM (and only about 40-60 bips in fee higher than the 7 yr ARM.)

The 30 FRM mortgage is currently available at par (no discount points) at 3.0% on the nose.

This is unlikely to remain in place very long… maybe a few months…..
BUT STILL… important to be aware of.

Dave ~

Thanks for letting us all know about this incredible rate! Here's the deal:

My dad has two 4-plexes close by and the interest rates are 6% and 6.75%. He has great cash flow and stable long-term tenants. Would the interest rates be higher because they aren't his primary residence but income property?

BTW, we were thinking about refinancing his personal home. It is a VA loan and at 4.375%. Do VA loans always have a bit higher percentage rate than conventional or other types? Does the Government/VA determine the loan rate or is it more "open market"? I was told by the current lien-holder that VA loans are higher. He is paying $1000 extra per month toward the principle and it is scheduled to be paid off January 2020. He isn't against refinancing and paying some reasonable fee to get a much better interest rate. He is thinking that he would plan to pay the same amount but more of it would go to the principle thus paying off the mortgage even earlier.

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