Hi,
We could not find our dream home. We are buying a home that we are not
going to keep it more than 4-5 years. We need $200k loan. So, we are
thinking of 5/1 ARM with one point to keep the interest rate as low as
possible. Our Mortgage broker's rate is %4.25 based on 30 years. But
he is advising to go for the higher rate but based on 40 years which
means lower monthly payments. BTW, we are just paying the %20 down
payment but have some cash to buy more points to lower the rate but
the recovery time would be too long.
We would like to hear your suggestions. What's the catch here?
Thanks,
Al