Mortgage Blog

Q: I have a 400k renal with the rate of 4.875% for 30 Yr fixed.
Is it a good idea to change it 5/1ARM? what's the rate for 5/1ARM.

A: The rate for 5/1ARM is around 3.75% to 4% now for 5/1ARM rental
with no closing cost all. You an think about if you plan to keep
it for a few years.

Though the rental 5/1ARM rate is higher, after 5 years at the rate
reset time, the rate will be the same as primray(reset).

You can choose 5/1ARM if you think you can handle the risk.