Is this a good deal?

Typically, loans with rate that are pegged to indexes like Prime plus X% or Prime minus X% are adjustable-rate loans. The current rate (or the start rate) if 2.86 sure sounds good, but when does the rate start changing, how high can it go (the cap rate), and what will that due to your payment? Generally speaking, in a rising rate environment adjustable rate loans are NOT good long term loans. We are in a rising rate environment and likely will see rates continue to rise over at least the next 3-5 years. Without knowing more about the details of the loan terms, I can't say for sure, but I suspect you will likely regret going into an adjustable Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Certified Mortgage Advisor and Certified by The National Association of Mortgage Professionals as a Certified Veterans Lending Specialist.Licensed in AZ, CA, GA, IL, MO, OR & WA. FL & TX coming soon In fact, NEXA is licensed in all states except MA and NY so give us a call. ~ www.ApplyYes.com 480-889-9000 - OR - 480-695-9300.