30 year fix vs 7/1 ARM

[Josh Silvester]

Hi everyone! I am under contract with a duplex and I’m currently shopping my mortgage options. I have a couple different offers here and wondering if I could get some advice. For context, we are 80k over asking and worried about appraisal not coming through but hoping we can negotiate with seller a bit. Borrowing 405000. 25k down on 430000 duplex

1. Mortgage broker- I've been working with this broker since I started getting serious about buying my first house hack 7 months ago. She is a family friend who also has good working relationship with my agent. She came back today with a 7.375 rate and 7.7 APR or 7% with .71 points. This is the highest rate I've gotten and she is not matching other offers. I trust her and her teams ability to get a decent appraisal (obviously not certain with any lender) but as you'll see below there are much better offers.

2. Mortgage broker #2- 6.875 fixed no points. He’s also been a good relationship since I started looking and has given me a lot of good education. My agent knows about him but doesn't really have a relationship. Closing costs here may be higher and the lender fee is about $500 more than others. 

3. Credit union- 6.875 with 3/4 points (~3300) OR 7/1 ARM @6.125 and $1000 lender credit. This is my credit union I've always been a member of. My realtor says they're pretty good but I am not sure an ARM is smart when I'm not putting a lot down and plan to keep this property long term. It's my understanding you can only refinance when you have 20% equity which would take me more than 7 years. Am I wrong? Are you guys seeing ARMs as good options in this market?

4. Major Bank (Chase)- 6.99 no points. They have mixed reviews but apparently have a deal where they pay 20k in lender fees if they don’t close on time. Thanks
for reading! Any input is appreciated!