In the beginning I was thinking about getting a 30 yr fixed as it is now much better than I could expect a week ago. I should be very happy to go with it. But when I did the math, it temptations to find out that it is about $200 a month difference and with the same monthly payment of a 30 yr fixed, in the ARM case I can add the extra $200 to my principle paid and that will make $17000 difference of principle paid and interest saved over 5 years.
Also with all the mortgage bail out chaos in past year, I really incline to believe that the government would like to yield over average American’s need (I know this confess will subject to a lot of laughters). See first the government increased the conforming limit; then when the mortgage industry answered it with a “conforming jumbo”, then the government took measures to get rid of that and make sure the policy be carried out. A week ago people all worried about the mortgage interest hike, and no one expected the drop. This let me start to double if my view was too pessimistic and conservative. That’s why I posted here to hear some advice.
