I got my points wrong on the first post, points on the 25% fixed was 3k and 20% was 5k.
Ended up going with the arm which was a slight negative point (like 500 lender credit) at 25% down / 4.5%.
The interest and point savings will be about 16k over 7 years before the rate unlocks. Worst case I should be able to pay it off in full or nearly so if rates soar and never go down.
My other mortgages are 30 year fixed 3.99 and 3.375 and 15 year 2.625. So this one will be an easy choice to make big extra payments on.
If in 2 or 3 years rates just drop a little, I can redo as a ~4.5% 30 year with a lower balance and better LTV, and that way grab a locked rate after saving a bit initially.
I might have switched to fixed if even with these considerations, but when I called to get the exact numbers the agent said I was already fully approved and clear to close, and any changes could have a small chance of delaying closing.
I am feeling increasingly that I will never sell the property even if I move out. Being unincorporated means very low chance of vacation rental restrictions and its size and acreage and distance from neighbors mean it has potential as a wedding rental, at least according to the lady from Vacasa I talked to who said it was comparable to such places she manages. I also getting excited about taking the current 8 tree valencia orange and tangerine grove up to 20 trees, starting with my favorites, red grapefruit and gold nugget tangerines. Plus some guava and black plum which have been prolific and low maintenance for me in OB.
Direct quote from vacasa manager: “Oh that’s great we love unincorporated!”
