Now or never?

Once again, the home mortgage interest rates are near historical lows. Fed has signaled that they intended to keep the prime rates "unchanged" for the "foreseeable" future. Major lenders include Bank of America has maintained favorable rates.

Monthly Payment Rate % Points % APR %

30-Year Fixed Rate, interest only $4,725.00 7.875 1.250 8.021

10-Year Fixed Rate $7,680.78 5.125 1.000 5.413

30-Year Fixed Rate $3,755.86 4.750 1.000 4.866

3-Year ARM $3,865.12 5.000 1.000 3.858 (Variable)

5-Year ARM $3,334.43 3.750 1.000 3.618 (Variable) (Samples with a loan size of $729,000 for new
constructions)

With more than 2 trillions national debts, more than one full year of annual GPD, this country has no way to pay back. So dollar will depreciate and Fed will have to print more paper notes. Wall Street reputation has already fallen down the cliff. It's golden time to invest in real estate.

The question is if borrowers should take conservative approach for the 30-year fixed, or to go for 5/1 ARM?

If you intend to live in the same house for more than 15 years from today, you should consider the 30-year fixed. In contrast, you have multiple mortgages and want to downsize in less that 15 years, the 5/1 ARM will give you more liquid assets.