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URL:  http://boards.fool.com/since-ive-read-a-number-of-your-posts-over-the-31106853.aspx

Subject:  Re: financing the next house Date:  2/7/2014  1:09 PM
Author:  2gifts Number:  126805 of 128075

Since I've read a number of your posts over the years and met you in person, I don't have the same concerns as ray. I think it's a fine plan. What is the difference in rate between the 3/1 and 5/1 ARM. If it isn't much, then the interest rate protection ofthe 5/1 may be nice in case your worst case becomes 6 years.

Thanks. I just looked, and the 3/1 is 2.75% where the 5/1 is 2.875%, so that small difference is pittance. Going for the 5/1 would make DH comfortable that we'd have a fixed rate for 5 years, allowing us to take more time to get things done. It works out to be a very cheap insurance policy to go for the 5/1 ARM, so I think that would make more sense for us.

As for what you do when you finally build your new house and sell your old house, I would analyze your choices at that time for what you do with the proceeds fro