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Personal Finances / Buying or Selling a Home
|Subject: Re: 30 FRM cheaper now than 5 yr ARM||Date: 9/26/2012 6:26 PM|
|Author: CCinOC||Number: 124317 of 126591|
You're right, AJ; the decision is strictly situational.
My brother, age 64, is going to buy a house for $89,900. He's putting 30% down.
69930 x 3.00 = $294.83 (per month, amortized over 30 years)
The payment is far cheaper than rent for a comparable house. In his situation, it doesn't matter if he ever pays off the mortgage. However, had he wanted to pay off the mortgage, a 5 year ARM would serve him well, as he can easily afford the payment.
69930 x 2.375 = $1,237.22 (payment required to pay off in five years)
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