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Thank you, Brewer and jIMOh.
jIMOh, here is my understanding of 5/1. Fixed rate for 5 years, one year intermediate, then floating... Since bank only locked rate for 5 years, so the 5 years fixed rate is lower then 30 years fixed.
We could pay off the morgage in 7 years if all ifs there. But most cases, we will choose to pay off a big percentage first, for example 50%, then slow down, using the money on investment.
Brewer hit the point. 30 years fixed gives many choices, the premium is very small.
Question number 2, where to find best rate?
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