Is a 5/1 ARM worth it with fixed rates so close?

Hi,

I%26#039;m currently shopping for my first mortgage and am wondering if theres any advantage in doing a 5/1 ARM when fixed rates are so close. My bank quoted me 6.125% on a 5/1 ARM with 3% down and 6% on a 30 yr. fixed with 20% down. I plan on staying in the house for no more than 5 yrs.

I do have funds for 20% down, but wouldn%26#039;t mind holding on to a few bucks for safe keeping. Is there a clear advantage to either of these options?

Thanks!

Is a 5/1 ARM worth it with fixed rates so close?child tax credit

do not get the ARM....you can get a 6.125% on a 30yr fixed with 5% down. FHA is 3% down...and that%26#039;s about 6.625%......another thing is how many points are you paying

Is a 5/1 ARM worth it with fixed rates so close? loan

Don%26#039;t fk up your future - never, never, never get an ARM. Especially with rates so low. Get the best terms on a traditional mortgage that you can, but don%26#039;t ever get an ARM.

@Robert W - when it rains it pours - eh comrade?|||Skip the ARM, you could loose everything. What do you think people are crying about?|||I say go with the 30. Put 10% down not 20. Even 5% down gets you conforming rates. You can still get 6% with a point. 6.25% with no points. Yes there will be PMI. If that is a concern, ask about a piggyback.

You will sleep better with a 30 and 5 years goes by in a flash!

BTW, What is the loan size?|||Why is your lender asking you to put 20% down on a fixed. There are so many other options out there. You don%26#039;t have to put that much down to get a fixed. Especially if you are a first-time homebuyer. I would do somemore research before taking the step that changes your life forever!|||Go ahead get the ARM . i%26#039;d like to meet u.

(fixed rate only)|||If you are certain that you will not outstay the ARM then it is a beter deal, sure.

But it is a gamble. What if something happens and you can%26#039;t sell?

Not worth it to me, personally.