COFI ARM - Posted by Nox(CT)

Posted by Nox(CT) on September 17, 2004 at 23:26:05:

This should have been in the RE Finance section huh…

…sorry

COFI ARM - Posted by Nox(CT)

Posted by Nox(CT) on September 17, 2004 at 23:22:32:

Looking at a home, and going through the financing options. A norm 30 fixed is a little on the high side, so I looked into some other choices. I came accross the Cost of Funds Index, together with an ARM for 1 year, that makes the payments less than rent, for a beautiful home. My intention is to hold off for a year or 2 and wait for appreciation, ( 5 - 10% + from my research) while providing myself with a nice place.

Pro’s / Con’s?

The article stated that it is less volatile and that “savvy borrowers” prefer them.

I then followed up with several RE Agents and Lenders, who alll basically agreed that they do not fore see the rates jumping in either direction for the next year+ in this area.

Almost sounds too god to be true, hopeing its not.