Does this look like a good loan?

[Dean Suzuki]

Hi,

I maxed out on my Fannie loans so I have been searching for portfolio lenders. I found one that lends at the following terms:

• Interest Rate: 5-year FHLB + 3.00%, floor or 5.95%
• Adjusts every 5 years
• No cap on rate adjustment (Note: Seems scary)
• Maturity: 20 years
• Require 30% down.
• No prepayment penalty

I am wondering if anyone knows what has been the historical 5-year FHLB rate and any predictions on what it might be in 5, 10, and 15 years since the rate adjusts every 5 years.

The no cap on rate adjustments is the scary part, but I guess I could prepay the loan if the rate goes crazy high.

Does this look like a good options to secure long term financing if I've hit my 10 Fannie Mae loans already?

If not, please let me know any better options.

Thanks,

Dean