My mortgage situation/dilemma...

[Shawn D.]

I'm in the process of getting a mortgage for a two family that I will live in. The credit union I will be getting the loan from as a 30yr fix at 4% with PMI. They are also offering a variable 3.25% for a 5 year cap then could potentially go up 2.5% with pmi. I was planning on going with trustco bank who offering 3.99% no pmi. Unfortunately trustco does lend in my area unless you have a 2+ year relationship with the bank. So I opened a checking account for the future. My plan was to take the variable rate of 3.25% with a local credit union for 5/5 cap and then refinance with trustco in 2 years. What do you think?