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Our credit is excellent, how much difference is there with a 7/1 or 10/1 ARM? Do you think 5 is the sweet spot right now?
I do....

The 7 yr is 3.4%
10 yr is 3.7%

I think the 5 year is the overall winner due to a variety of factors;
A) Realistically, the rate markets are very likley to be suppressed a good while longer (just my opinion based on current & historical data... but I just don't see any susbstantial argument to the contrary,)
B) Based on your data presented so far, your savings growth rate on discretionary savings, plus the diferential savings form the 5 yr ARM, and the faster amortization accumulation (automatic paydown of the principal,) you would be in a position to stroke a check to wipe out the entire balance sooner with the 5 yr than with the 30 FRM (or either the 7 or 10 yr ARMs.)

Sounds like I need to reassess my mortgage broker...
Could be a good idea, indeed ;~)

Dave Donhoff
Leverage Planner
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