HI All,
I am in the process of selling my current home ( on a 7/1 ARM at 3.25% ) and downsizing in both square footage and cost and comparing loan options.
Thoughts on the
IO ( with a lower monthly payment but potential balloon / increased payment att he end of the term )
ARM ( similar but with payment to principal and interest )
30 year fixed ( higher payment but more secure and less psychological stress )
My goal regardless is today it off in 10 years, making large " chunk " payments as I can.
I am also putting 50% down.
Other factors, we are having a baby ( yay! ) and will be in perfect location for schools ( all rated 10/10 ) all the way through high school, so don't need to move in the bear future. Other intangibles important to us are there as well.
What are your thoughts?
Thank You