5/1 arm vs 15 year fixed

Based on average 2014 mortgages, Bankrate.com reports that mortgage rates were 4.5% for 30-year fixed-rate mortgages and 3.3% for the first five years of a 5/1 ARM. This amounts to monthly payments of $1,000 on a $200,000 mortgage with the 30-year fixed-rate (including principal and interest).

If interest rates go down in 15 years (unlikely) If I took the 30 year fixed: I’ll be sad since I’m sitting at 6.5% and I would refi at a lower rate. If I took the ARM: I would be fine and have the choice to ride out the ARM or refi at a lower fixed rate, but in the mean time, I would have had more capital.

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5/1 Adjustable Rate Mortgage Rate is at 3.31%, compared to 3.32% last week and 3.82% last year. This is lower than the long term average of 4.03%.

The 30-year fixed average rose to 4.59 percent this week, while the 15-year fixed rose to 3.65 percent. The 5/1 ARM, meanwhile, was at 3.57 percent, up a few basis points. ""Investors in bonds, to.

ARM vs Fixed Rate Mortgage Calculator. The most common ARM loan is the 5/1 term, which offers five years at the same interest rate. Some borrowers prefer a 15-year mortgage to reduce the amount of interest paid over the life of the loan.

15-year fixed rates. Once the initial fixed interest rate expires, 5/1 ARM rates can – and often do – increase, leaving you with a bigger mortgage payment. Choosing a 5/1 ARM versus a 10/1 ARM is all about timing. To select the right loan, you’ll need to make some predictions about the next five to.

15 year cash out refinance rates Thankfully, this reduced limit only applies if you refinanced a loan that was taken out after 12/15/17. at the rate of $33.33 per month ($400 per year), for as long as the new loan remains.

5/1 ARM Vs. 30-Year Mortgage. The home mortgage has made it possible for millions of families to own their own homes. A 5/1 ARM is a classic adjustable rate mortgage. The 5/1 ARM’s initial interest rate remains fixed for five years and then adjusts once annually thereafter.

A 5/1 ARM can get you into the same house but with lower initial monthly payments. With a 5 year ARM you may be able to start out with a 6.25 percent interest rate, therefore making your monthly payments only $985.15 for the first 5 years of the loan. However, after the 5 year fixed period, the interest rate can change based on the index.

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