All Forum Posts by: Molly Haggerty

Thanks! 

@Erik Estrada The ARM rates are as follows:

- 10/1 ARM – fixed at 5.25% for 10 years. Cannot increase by more than 2% in year 11, 2% in year 12, and no more than 5% for the entire life of the loan.

- 7/1 ARM – 5.00% same 2/2/5 caps as above

- 5/1 ARM – 4.75% same 2/2/5 caps as above

Not sure about the prepayment penalties associated but great question. My goal is to scale with appreciation gained over time. 

Thank you both! I agree the fixed rate seems to make more sense for a long term investment. 

Hi all,

New to BP and REI but looking to purchase my first investment property soon. I inquired with a mortgage lender and was provided several options for financing:

1. Fixed rate mortgage for 30 years

2. 3 different ARM options - one for 10 years, 7 years, or 5 years with a 2% increase cap for first two years and 5% cap for entire life of the loan

I would like to buy and hold the property I'm interested in, but am struggling to decide whether a fixed rate or ARM would be best. The ARM rates are enticing, but not sure what to consider with the future state of the market/refinancing. Any advice on the pros and cons?

Thank you in advance!!