BRRR “refinance question”

[Scott Rauch]

I'm at the Refinance part of my BRRRR. I Just got it appraised a few days ago. A local small bank has offered a 20 year ARM loan. Interest rate for the first 5 years is set at 4.75%. Then at the 6th year the interest rate resets and is based off the FHLBNY fixed rate advance plus 3%. Then resets every 5 years after. My principle and interest will stay the same over the 20 year loan period. But at the end of 20 years I will be responsible for any extra payments if the interest rates are higher. If they are lower I won't owe as much. Is this a good loan deal? Thanks