7 year fixed w/ 15-30 amortization

[Ryan Moore]

Dumb question, but when a lender says 7 year fixed w/ 15-30 year amortization, that's just an ARM correct?

[Stephanie P.]

Originally posted by @Ryan Moore:

Dumb question, but when a lender says 7 year fixed w/ 15-30 year amortization, that's just an ARM correct?

Not a dumb question and the answer is yes, it'a an ARM. Not sure what the 15-30 piece is because usually a 7 year ARM has a 30 year amortization, not 15.

• Find out what the ARM is tied to (T Bill, LIBOR etc...)
• Check the index's volatility with charts online
• Figure out what the rate will adjust to in 7 years.
• Decide whether you're going to have the property 7 years from now
• Would a shorter term ARM suit you better or would a 30 year fixed work better
• What's the prepayment penalty and for how long

Just a few things to find out

Best of luck

Stephanie