The 5/1 ARM rates are a bit lower than a 30-year fixed, however the price of mortgage rates gets less cheaper as they get higher on a 5/1 ARM... vs. get more cheaper as they get higher on a 30-year fixed. A little complicated to understand, but what it means is that if you paid a few discount points on a 5/1 ARM your rate would be lower than if you paid a few discount points on a 30-year fixed... however if you didn't want to pay any/not much discount, then a 5/1 ARM would have higher rates than a 30-year fixed. Further, if you go FHA, you'll have a spankin' good interest rate on a 30-year fixed with your scores, vs. going conventional 5/1 ARM you'd have the rate increase due to the 648 mid score.
Why are you looking for a 5/1 ARM?
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