Mortgage Question: Please tell me what you think about this mortgage.?
I recently applied for this mortgage:
75% of it is a 10 year fixed for 5.37%. After 10 years it becomes an ARM at 1+Prime or something like that.
25% of it is a 7 year fixed for 9.125. After 7 years it becomes an ARM as well.
Both have no prepayment penalties and we can refinance either at any time. We plan on refinancing the second one after a year or so to something a little bit better if possible.
Do you think that this is a good idea with all the talk about how ARM’s are bad?
Thank you for your reply.