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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 from the old house rather than automatically making the decision to pay off the new house too. Everyone is different. A paid off mortgage isn't one of my highest priorities.

I will do that, but DH and I both do like the idea of having the mortgage paid off. This one may come down to the sleep-at-night factor, or just that DH is more conservative in that regard than I am and would prefer the mortgage to be paid, where I would be inclined to rethink it later and decide based on the numbers. Either way, it's not a decision I have to make until we get to that point, but as you know, I need to have a plan, even though the plan may keep getting updated. That's what helps me to sleep at night.
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