Company is moving us, time to shop mortgages through their 4 preferred lenders (highly likely to use the credit union).

Have operated under preference of 30 yr for stability, etc. But this new assignment is a 3-5 year hitch, and then they relo me back here or to a different location. This is not a permanent move no matter what, just a matter of how long.

So coworker recommend a 7/1 on a 30 yr amortization schedule through the union. They provide a $1k loan change (don't know technical term) that would allow to roll over to a 15 or 30 yr note before 7/1 period ends.

7/1 is ~$110-20 less per month, which would be nice. What am I missing on this type of scenario? Bad idea with direction rates are headed? Or should be ok since going to move within 3-5 years?

If you're certain you're moving in no more than 5 years it really doesn't matter what the rate is beyond that period. Save the money.

im also moving within 5yrs and am currently in the process of getting a 7/1 instead of a 15yr

This is one of the things that ARMs are for.

hph6203 said:

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This is one of the things that ARMs are for.

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Yep

Thanks.