UnThreaded | Threaded | Whole Thread (36) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: 2gifts Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127868  
Subject: Re: financing the next house Date: 2/7/2014 1:09 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (36) | Ignore Thread Prev Thread | Prev | Next | Next Thread


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.