10 Year Balloon ARM Investment Loan For Rental

[Kaveh Jafari]

I am currently looking at different options to get pre-approved for my first rental property home loan in the US and was wondering if it is a good idea to use a 10 Year Balloon ARM Loan @ 4.37% for my purchase. What are the pros and cons? I have good credit score +730, income and can make 10% to 15% downpayment.

[Jonathan R McLaughlin]

@Kaveh Jafari to be clear, if you can get a fixed rate 30 at prevailing or even slightly higher rates thats always a safer option and it should be available under 5% right now. Credit unions aren't usually the sources of the most competitive loan rates. And if you want to hold for a long time why not do that? 

Good luck.