The Motley Fool Discussion Boards

Previous Page

Personal Finances / Buying or Selling a Home

URL:  http://boards.fool.com/if-it-isnt-much-then-the-interest-rate-31106972.aspx

Subject:  Re: financing the next house Date:  2/7/2014  2:05 PM
Author:  CCinOC Number:  126806 of 127565

If it isn't much, then the interest rate protection ofthe 5/1 may be nice in case your worst case becomes 6 years.

Depends on the terms of the ARM. There are 2/2/5 ARMs and 5/2/5 ARMs. If the OP thinks rates will shoot up, he's better off getting a 2/2/5 ARM that limits the increase on the first Change Date to 2%.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us