3 Year ARM w/15% Down vs Conventional 30-Yr Fixed w/20-25% Down

[Andrew Northcutt]

Hey everyone, I'm exploring the idea of a 3-year ARM mortgage with 15% down vs a conventional fixed year mortgage for a longer-term buy and hold investment property. The rationale for considering the ARM is that, given the rates environment, I think there is a good chance that I would be refinancing in the next few years regardless. Therefore, the money saved from the lower down payment could be used to save for another down payment, renovations to improve rent and property values, etc. Beyond the higher initial monthly payments and possibility of rates staying/going higher, what other factors should I be considering?

[Caleb Brown]

Personally I'd rather have a fixed rate and refi down the road if they drop. The peace of having the same payment is nice. ARM is more common now but it's risky, you can't predict the future