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Updated over 5 years ago on . Most recent reply

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Christine Tranchilla
  • St. Louis, MO
0
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4
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Financing Strategies - ARM vs Fixed Rate

Christine Tranchilla
  • St. Louis, MO
Posted

Hi Everyone,

I'm just starting out on my real estate journey and have been exploring financing options in St. Louis, MO. I plan to finance my properties under an LLC and currently have two banks offering ARM's. One is a 5/1 ARM with a 25 amortization and lower interest rate, the other is a 3/1 ARM with a 20 year amortization and higher interest rate (1.25% higher). At first glance, it seems like I should go with the 5/1 ARM given the lower rate. my questions for the group are:

1. Are there any other factors I should take into consideration when comparing the two that I'm overlooking?

2. Are there ways to eventually convert these into fixed rate mortgages rather than continually having the ARM reset when using an LLC?

Thanks in advance for the advice!

Christine

Most Popular Reply

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1,164
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620
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Stephanie Medellin
  • Mortgage Broker
  • California
620
Votes |
1,164
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Stephanie Medellin
  • Mortgage Broker
  • California
Replied

@Christine Tranchilla Fixed rates are so incredibly low right now, why would you take an ARM?!!! Lock in a low rate now and you won't have to worry about refinancing later.

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Stephanie Medellin, Loan Factory

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