I need help in choosing the best loan option for a duplex

I simply ask clients to think about the long-term and short-term goals, then factor in the risk tolerance. I like the 5 or 7-year adjustable - but really only if you are pretty sure you won't own the property much longer than the fixed period. For example, if you pick a 5-year fixed, and you are pretty sure you won't own the house more than maybe 5 or 6 years. You have nice savings right away, and have little risk. On the other hand, if you pick that 5-year fixed, but think you are going to own it forever, you expose yourself to substantial risk after the fixed period. be sure to ask the lender about the index and the margin, and the maximum year over year possible adjustments, and the maximum lifetime adjustment, so that you are correctly assessing the risk. Adjustable loans should be expressed something like 5/2/5. The first number is the maximum adjustment it could adjust when it first changes, the 2nd number is the maximum, it could adjust every year afterward, and the last number is the maximum lifetime possible adjustment. using a 5/2/5, your 3% rate could potentially just to 8%. The 'margin" is the amount added to the index to determine your future rate. I lend in MN, WI IA, ND, SD. Find me at FirstTimeHomeBuyer-MN.com - Cambria Mortgage, NMLS 274132