Who routinely offers 10/1's? I usually see 5/1 or once in awhile, 7/1.They're a center of the plate ordinary offering here in the NY metro area, as is the 7/1.And does recovery period not depend upon the initial lock time, the spread between the fixed rate and variable rate at the time of locking/closing the loan, and the caps applicable to the variable rate loan?Of course. In general right now the 10/1 is running about .375% to .50% below the 30yr. My point was and is that behavior often trumps logic when making these choices. Don't get me wrong, I think the 30yr has its place and is a great choice for someone who actually may be in their home and keep their loan for a very long time. But the idea that that is most of the people most of the time or that Fixed/Adjustable rate loans are some evil instrument of the devil created by banks to screw innocent borrowers is brainless, populist crap.
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