Is a 3/1 ARM the right choice for me?

4 Replies

I'm looking to do a cash out refi on 3 sf units that I own free and clear. I've been offered a 3/1 ARM at 4.65% with one year adjustments at CMT + 3.75%. 15 year, 65 LTV, 1% fee. This is a new loan structure for me. Any input would be greatly appreciated. Thanks
Thanks. I am planning on keeping the units long term, buy and hold. The adjustable rate was not appealing. I don't think I will be accepting these terms. I found another lender that will give me a fixed rate for 5 years, then the rate adjusts every 5 years according to what the market rate is at the time. 25 year amortization. The rate isn't determined from some random index, but rather based off of the market rates. I like this better.