want a 300k mortgage, confused about terms?

A lot of what is best for you is determined by yourself based upon your future plans. Keep in mind the indexes that most ARMs are based upon are at historicly low levels. The odds of them staying there are not as good as the odds of them going up, which would result in a higher payment for you, or the cost of a refi. In my opinion, the small difference in rates between ARMs and ficed rate mortgages do not make them attractive. I think in this market, it is better to have a lower rate fixed rate loan than a potentially volitile ARM. The other thing to keep in mind with rates being low now, is many loans are assumable. If you get a 30 year fixed at 4.25% for example, and decide to sell in 6 or 7 years and rates are at 6.5%, if your loan is assumable you have a much more marketable commodity to sell. In the end it is up to a borrowers on risk tolerance as to what is best for them, and a god loan officeer to educate them as to the positives and negatives of each loan type. let me know if you have any other questions, or want to take a look at the differences between loan types a little closer. You can cal me at 877-376-0223 or email me at steve@1800valoans.comGood luck,Steve Sexton

A 5/1 ARM or 7/1 ARM is a loan where the interest rate remains fixed for the first 5 or 7 years of the loan respectively, and then converts to a adjustable rate mortgage. What I advise my clients when considering a 5/1 or 7/1 ARM is to take the amount of time they intend to stay in a home, and then add 2 years to give you a cushion in case you end up remaining in the home for longer than you originally planned. At the end of the day, the whole idea behind a 5/1 ARM or 7/1 ARM is this; if you do not intend to stay in a home for 30 years, don't pay a 30 year interest rate. The difference in interest rate between a 7/1 ARM and a 30 year fixed is about 1/2%. Over the 5 years the savings on a 7/1 ARM over the 30 year option would be about $5,300.00. That would be money that you would not want to leave on the table, assuming that the 7/1 ARM would be the right loan for you given all of your circumstances. My name is William Crawford, and I am the Branch Manager at Supreme Lending in Southlake, Texas. For the past 21 years I have been assisting clients by counseling them on there financial goals as a whole, and then tailoring a mortgage plan to meet there needs. Feel free to contact me personally toll free at at 877-575-2929, or by e-mail at william.crawford@supremelending.com, and I would be happy to provide you with personal assistance.