CHICAGO (MarketWatch) — Don’t be so sure that a 30-year fixed-rate mortgage is the best home loan for your needs. For some borrowers, it may make more sense to consider an adjustable-rate mortgage instead. … So, for a borrower who plans on moving within five years anyway, they’d save as much as $19,283 by financing with an ARM.
Are you kidding me? If you are planning to move in less than five years you should be renting. Why would you pay several thousand dollars in origination fees to get a mortgage for that short term? You would then have all of the disadvantages of ownership and almost none of the advantages.
What's resale going to look like in your "less than five years" time frame?
What's left after you deduct the selling realtor's commission, pay for the repairs demanded by the buyer to complete the sale, and pay off the balance of the mortgage loan? Yeah, didn't think of that, did you?
That’s like the car advertisement that says I can save $1000 by buying a certain car from a certain dealer on a certain day. Actually, I can save $32,000 by not buying the damned car at all and just driving the one I have.