Portfolio vs Piggyback loan

[Daniel Alvarez]

Hello all,

I'm recently delving into uncharted waters in financing and property type. All my past investments have been either on a primary or pure investment property using a single, fixed rate conforming loan. I now have a ~800k property that I'm purchasing as a second home, closing in 45 days, and have the option of a:

1. 10% down, 30yr piggyback, either a 65/25/10 conforming at 3.5% - 4% blended rate, or maybe a 80/10/10 jumbo; OR
2. 5% down, no PMI 5/5 or 10/5 ARM mortgage, possibly as low as 2.75% for the 5/5 or 3.25% for the 10/5.

I've no experience with either. Beside the rate risk on the ARM, I'm interested in the forum's exposure to these two loan structures and any risks or restrictions I should be prepared for. And if you have a preference (even if not listed above), please which one and why. I intend to use the house to vacation with the family and as a VR the rest of the time.

Thanks in advance!