Land Loan

[mtholton]

Alright thanks for all the input. Think I've settled on a 5/1 arm. 3.5% for the first five years. Can't move more than 2% up or down per year after that. Max rate would be 8.5%. No prepayment penalty. Amortized over 30 years. Even if it went to the max rate, the out of pocket would be closed to the fixed 20 year rate at 5.8%. Since my intention is to pay off early, I like the option of lower payments if needed.

 

[MoBuckChaser]

Alright thanks for all the input. Think I've settled on a 5/1 arm. 3.5% for the first five years. Can't move more than 2% up or down per year after that. Max rate would be 8.5%. No prepayment penalty. Amortized over 30 years. Even if it went to the max rate, the out of pocket would be closed to the fixed 20 year rate at 5.8%. Since my intention is to pay off early, I like the option of lower payments if needed.

Smarter move kid! Hope it goes good for you!