10/1 ARM better than 30 yr FHA? 550k & 315k property

[Varun Parkash]

Guys, I have a 30 year - 3.75% fixed rate loan on 550k property that I am thinking of refinancing it into a 10 year ARM. Currently the loan has completed 2 years. Property is now an investment property for which the original loan was secured as a primary residence loan. I also bought a 2nd home - vacation (315k) - closing in a few months - and have locked a 30 year loan at 3.875 interest rate - by paying $1300 fee. My question is : 1. Does it make sense to convert both of these loans to 10 year arm loans to get interest rates dropped to 2.5? 2. Since the second home hasn’t closed yet - my options are open and no closing costs etc has been paid yet. Is it recommended to take 10 year arm on it? 3. What fees/penalties do I have to pay to refinance house 1? I read that arm loan conditions are that home can’t be sold for 5-8 years ? Both these above homes are investment purposes and eventually I will be buying a 3rd home in 1.5-2M range for living myself in a couple of years. Currently I loose around 4K/year on home #1 (550k) - if my interest rate drops from 3.75 to 2.5 - there’s a considerable saving of $300 something per month in p&i Please advice the pros and cons