We can raise credit scores dramatically in only 3-4 weeks so to help you qualify
For Over 5yrs We've been working with Mortgage Brokers, Real Estate Agents, Car Dealers and others throughout the USA..
Hope this helps..
888-271-2221 ext 203
One thing you want to consider in the ARM vs fixed is rates. Many of my posts in other thread have stated my belief that rates will go down in the near term and I do believe this, the gov't has cut the prime rate which has not been reflected in mortgage rates yet. While the correlation is not 1, its high between these rates. But even with a 2 year prepayment penalty, its impossible to forecast that long into the future. So if you're credit is so-so and you're taking an ARM to get a better rate now, and WILL pay everything on time to improve your credit score, then its probably a risk worth taking because even if rates go up, if you improve your credit score, your rate could still be less. I'm mentioning this because I believe you've posted in the past about your credit being so-so and worried about getting a mortgage.
So in summary, if you need ot work on your credit score anyway, I think the ARM isn't a bad idea assuming you do improve your credit score. If not, rates are still good, although not at historic lows so it may be worth locking in now.
It sounds like you are getting pretty sound advice from your mortgage broker already. Some statistics say the average household keeps the same mortgage for no longer than 7 years for a variety of reasons. People sacrifice their current loans for better interest rates, cashing out for home improvement or other monetary needs such as health care or investment strategies.
Gail is correct in asking your mortgage broker about a pre-payment penalty. I would also consider whether or not you are being charged origination fees for this loan and calculate the total cost of the transaction. $34k is a large savings, but you need to know how long the break-even period is in comparison to other options. If you need assistance working through these numbers please don't hesitate to contact me.