Re: Interest Rates gamble - 30 yr. fixed vs. 5-year ARM\'s
It largely depend on the structure and caps on the ARM. Take a look at the MAX shift on the arm (how often? how much?). Ask your bank/mortgage broker to show you the annual payments on both mortgages assuming a substantial shift up in rates over the next year...
Interest rates are likely to be a point or so higher this time next year, over five years, who knows. Mtg rates are still near all time lows, so I don't think you can go too wrong with the fixed....
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