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House hunting is a long journey. Finally we are there. Now the question is ARM or 30 Fixed?
In fact, ARM never came to my mind until this morning. When I talked with one MBS guy in our company, he said maybe I should consider ARM. He bot his house at 2001 and used 5/1 ARM.
Here is our situation.
We will put 15% down and have a piggy loan. We have one 15 months CD matured at this Dec, it is good to cover the small load, 5% part.
I do some cash flow analysis. Assuming our current income, after max 401k and Roth(maybe could not do it, but I put 8k aside anyway), after the daily life expense, after all tax..., we could pay off the morgage in 7 years.
So 7/1 or 5/1 ARM looks attractive since we will get a better rate? By the way, my wife and I, we have nice FICO, both >740.
How you guys think?
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