• ohlaph@lemmy.world
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    1 year ago

    I took a combo loan, one 10 year ARM, and a 20 year fixed. I know I probably won’t get a better deal when my rates inevitably increase at year 10, but saving almost 1.5 percent over ten years is nice. Hoping to have it paid off by year 15, so 5 years at a higher rate should be okay for now. Short-term arms are crazy.

    • pahlimur@lemmy.world
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      1 year ago

      If your in the US you should have refinanced in 2021 if it was an option. It’s cheaper for me to pay the minimum on my home loan than it is to pay it off. Inflation is significantly more than my mortgage interest rate.

      Hopefully it works out for you, but I’d be legit terrified of the moment that loan becomes adjustable rate.

      • ohlaph@lemmy.world
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        1 year ago

        And we still have 8.8 years roughly, so we’re trying to pay what we can before we reach that point. It should give us time. Our ARM and fixed arw actually for a 20 year pay off. We could refinance later, but goal is to have the fixed paid off and 75 percent of the ARM paid off at year ten, then that tives us roughly 5 years for the rest.

      • ohlaph@lemmy.world
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        1 year ago

        I purchased in 2022 right before the major increases happened, well, in the middle. I’m in at 4.25.