Legal Question in Real Estate Law in Massachusetts

Re: ajustable rate mortgage

Right now the difference between a 5 year arm and a 30 yr mortgage is negligible. Without knowing your mix between first and second and your equity in the home, it is difficult to know how to advise you. Assuming you have at least a 25% equity in your home, you should be able to obtain a single Mortgage with a payment that is lower than you are paying now and a rate that is somewhat lower than you have now.

All things being equal you are better off with a 30 year fixed rate loan than an ARM in the current market. If you are in a position that you need to substantially lower your payments or consolidate debt, you may need an ARM. PLEASE CHECK TO MAKE SURE any loan you take does not have a Negative Amortization for the first few years, this could result in a huge problem for you later. The loan you describe I believe is a negative amortization loan, which means your debt rises for the first 3 years and then your payments and interest rate will go up substantially. You are better-off with more conventional financing.

I would suggest you talk to several mortgage brokers or banks for rates. If you want I can refer you to a couple of responsible Mortgage brokers and bankers.

Good Luck.