5/1 arm or fixed rate

[Dallas H.]

With rates set to increase in which option should I get for my rental property loan? I plan to hold for at least 5 years-10years. I can get 5/1 arm at 4.25% or a 30year fixed at 5%

[Daria B.]

Originally posted by @Dallas H.:

With rates set to increase in which option should I get for my rental property loan? I plan to hold for at least 5 years-10years.
I can get 5/1 arm at 4.25% or a 30year fixed at 5%

There doesn't seem to be that much of a spread between rates. Why not do the 30 @ 5% to lock that in rather than messing with an adjustable. Also, doing closing costs (initial) twice and spending more to refinance the ARM after 5yr.