30 yr vs ARM

[Rajiv R.]

Purchasing a new townhome and received the following as best so far:

- 6.875% 7/1 ARM

- 7.35% 30-year fixed 

I am aware of the risks with the ARM and plan is to either refi when (if) rates drop, or sell around year 5 (along with others I plan to purchase) to get into commercial or larger multifamily. There is a small chance I keep this one and continue to build the portfolio.

One lender is pushing the 7/1 and the other tells me an ARM isn’t for investment properties. Everyone has their incentives so wanted to ask here for some unbiased advice.