Quote:
Originally Posted by Mr. Liu
^ Yeah, the closing costs for me was around $2500 all-in. I chose the 5 year due to the fact that I might be flipping it within 5 years if I move out of state for work... plus the cap on it was 5% above lock. I highly doubt interest rates will move that much in the 5 years. You can say I am taking a bit of an interest rate risk but I am saving a lot of money.
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I'd go for the Penfed 5/5 Arm over the 5/1 you mentioned. It adjusts once every 5 years vs. every year. Going to be much cheaper if you decide to stay for longer than 5 and you will probably be able to buy down the rate with points (with the savings in closing costs) to the same rate as the 5/1.