If you are certain you will be paying off the loan in 5 years then a 5/1 ARM is definitely the way to go as the interest rate will be considerably lower than any longer termed fixed rate that you can obtain. A 5/1 ARM is fixed for the first 5 years then adjusts annually thereafter( if you still have the loan). I would be more than happy to discuss your options. I can be emailed at firstname.lastname@example.org
Home Savings of America
Member FDIC, Equal Housing Lender
If you know that you'll be paying the mortgage off in 5 years, you'll be better off with a 5/1 ARM or a 7/1 ARM. These are 30-year hybrid adjustable rate mortgages. A 5/1 ARM simply means that the interest rate is fixed for the first 5 years, then adjusts every year thereafter for each of the remaining 25 years. A 7/1 ARM means that the interest rate is fixed for the first 7 years, then adjusts every year thereafter for each of the remaining 23 years. Interest rates for these loans are often much less than they are for fixed rate mortgages, thus enabling you to save thousands of dollars in interest payment. Virtually all mortgage lenders / brokers offer these products.