DSCR Terms Opinion

[Ryan Jacques]

Hi all, I just received the below term options on a DSCR new purchase loan (780 credit score). I'm curious to learn if these seem in the reasonable range including the fee amounts. I'd also like to ask if the rate difference between 30 fix and 5/6 Arm is now typically less than 1%. I thought it use to closer to 1% in the past, not closer to .2% like this one.

Option 1:

30 Year Fixed
Loan Amount $202,500.00
LTV 75%
Discount Points %0.00
Prepayment Penalty (3/2/1)
Interest Rate % 8.225
Origination Fee % 0.00
Underwriting Fee $1,645.00
Monthly Mortgage Payments $2,018.76
Broker Fee % 1.25
Cash From Borrower $78,081.01

Option 2:

5/6 ARM
Loan Amount $202,500.00
LTV 75%
Discount Points %0.00
Prepayment Penalty (3/2/1)
Interest Rate % 8.025
Origination Fee % 0.00
Underwriting Fee $1,645.00
Monthly Mortgage Payments $1,990.40
Broker Fee % 1.25
Cash From Borrower $78,052.65