3.6% first 5 years -- then resets for another 5 years, etc. You mean is 3.6% for first 5 years.Then the next 5 is 4.6%?Most loans I've seen (which admitedly isn't a lot) are 5-1 or 3-1 ARMs.So after the first 5 years it annually changes the rate.If the rates were slowly going up (say prime goes up 0.3% each year) it'd look something like this for each year:3.6%3.6%3.6%3.6%3.6%5.1%5.4%5.7%6.0%6.3%etc.Which loan is better for the first six years? Get out a spreadsheet and do 72 rows (one for each month) and plug in your assumptions about what interest rates will do.I'd do a couple different scenarios - including absolute-worst-case-rate-increase-that-maxes-out-the-rate-adjustment-limitsAnd a realistic-worst-case.And if I were you, I'd look at both the interest paid, and cashflow (monthly payment)
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