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Updated about 7 years ago on . Most recent reply

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

Stephanie P.
#5 Mortgage Brokers & Lenders Contributor
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- Washington, DC Mortgage Lender/Broker
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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