CCinOC: "I can understand that, but for the benefit of other readers...since the 1-month LIBOR ARM recasts each month, more of the fully amortized payment is going toward principal than would the fully amortized payment for a 5/1 ARM, thereby making the 1-month LIBOR ARM as stable as a 5-year ARM and saves interest, too.Example:$750,000 loan amountConventional jumbo 30-year fixed rate: 4.30% Payment: 3711.54 Interest: 2687.50 Principle: 1024.04 Balance after 5 years: 6740671 month LIBOR ARM: 1.75% amortized over 25 years Payment: 3088.42 Interest: 1093.75 Principle: 1994.67 Balance after 5 years: 617430674067 minus 617430 = $56,637 difference!"You are using two different amortization periods, as a result, I do not believe that the comparison is apples to apples.Regards, JAFO
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