If we are not sure that we will be moving within the next 5 years 5-1 arm a mistake

Great Question. If your not sure you will be out of the home in that 5 year period I would recommend staying away from that type of loan. There is one thing you can count on in this market and that is that rates are going to go up in the next 5 years. You could always look at the 7 year Arm to give you a little extra cushion. Let me know if you would like any further information regarding ARM Vs. Fixed products. Feel free to email me at dan@omnifund.net or vist our web page to review rates and fees. Omnifund.netThanks again for the question.Dan ConleyDirector of Operations619-886-3294

My opinions on adjustable mortgages... If you are pretty sure you will no longer need the loan before the first adjustment period - taking an adjustable mortgage is a no brainer. For example, you are sure you are moving in 6-years, and you take a 7-year adjustable. If you think it may be close - it is still a safe bet. For example, you are likely to be moving in 7 - 8 years, and you take a 7-year adjustable... But if you think you are going to be in the home for a long time... it is too much of a gamble. For example you see yourself in the home for 15-years, and take a 7-year adjustable.

Everyone views risk differently, but because of the recent housing melt down, ARM's have gotten a very bad rap, and have been labeled high risk, which is simply not true.. but in general, the only risk of taking an ARM and not moving before the adjustment period begins, then you simply run the risk of having a higher interest rate which in turn, a higher payment.. The terms of the ARM will limit how much the rate can go up in any given year, and there's a lifetime cap as well.. I usually tell my clients to look back 5, 8, 10, or even 15 years ago.. where did you live, how long did you live there.. if you have a track record of moving every 6 years, then a 5 or 7 year arm is ideal.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Doing an ARM is risky as you know we can not predict what the rates will do in the future however I am pretty certain that given the current rates they will increase rather than decrease.In your situation I would rather look into loans that incorporate the cost into the rate. This may be a benefit to you however I would be more able to show you the best program if I knew more about your situation. By the way there is no such thing as a no-cost loan so be careful.If you would like me to evaluate your situation and give you some viable alternatives please feel free to contact me.Best RegardsScott Williamson916-261-0499scottpwmson@gmail.com

There is absolutely nothing wrong with taking the 5/1 ARM especially with how low the current start rates are. It's not simply whether you are going to move in 5 years or not. What is your overall financial plan, is this your first home, second home, how stable are your careers and industry. I agree with all the other lenders about rates increasing but my question is what are you really trying to accomplish? Monthly savings, are you trying to full fund your long term savings, trying to pay off revolving debt, save for educational expenses, etc. The current 5/1 ARM have low fixed margins of 2.25% or less so you will not face a big payment change come year 6 and there are rate caps that will prevent you from having a balloon payment in the later year. If you want an inclusive break down of the numbers email me at tony.magtoto@hanafinancial.com or call 714.276.1150. I'll help you make the right decision.

Good evening Shipwreck, Thanks Thank you for the question. Like any other decision you have to get as much information you can to make the best choice for you and your family. Arms are a great program if your truly understand their value and finacial benefit. Like any thing there is risk involved. I would suggest looking into the 7/1Libor Arm. It is the most consistant index. I like that program if you are think of moving in the next 5 years. It is something I would definitely consider. Ultimately making the best choice for you and your family is the mission. I wrote a blog on the subject a while back. Here is the link incase you what to look into it. www.dearicjackson.com/2013/05/06/30-year-fixed-vs-71-arm/If you ever have any question feel free to give me a call or shoot me an email. Good luck. Coach7076285572DJackson@envoymortgage.com

Doing an Arm is always risky unless you are sure you will be out of the house before it adjusts. If you are not sure that you will be moving in with in the five years take a fixed rate, or a seven year Arm.

It's smart to be thinking about it in these terms - unfortunately no one can tell you if you will sell within 5 years and what will happen to rates. The only thing you can do is reduce exposure while still getting the best possible loan. Any loan officer worth working with can compare different loans extended out five years. For instance if you knew that the savings you gained in the first five years of an ARM would be enough to make up for the extra money it would cost you the second five years as compared to a fixed rate, would it be easier to make a decision? You really want to sit down with a LOCAL LENDER that is experienced in this type of analysis. If you have a good accountant or financial planner, they probably know a lender capable of helping you.

If you are unsure if you will be moving in the next five years, it is generally best to stick with a fixed-rate loan - that will be your safer option. You can also consider a 7/1 ARM or a 10/1 ARM, which will give you a fixed-rate for 7 or 10 years versus 5. If you currently have an ARM and are looking to refinance to a fixed-rate mortgage, we can help you! We are a mortgage banker located in San Diego, licensed in California. Call us at 858-605-0952 and ask about our no-cost refinance options.