7 yrs arm...best rate available

[Sabz]

Hi,
I just needed some input with the 7yrs arm...I am getting 2.62% with a closing cost of about $8500 on a jumbo loan or a 3.125 % with a closing cost of $800. The rates unfortunately have gone up lately....

What should I do?

 

[usctrojancpa]

Hi,
I just needed some input with the 7yrs arm...I am getting 2.62% with a closing cost of about $8500 on a jumbo loan or a 3.125 % with a closing cost of $800. The rates unfortunately have gone up lately....

What should I do?

If the gross monthly savings times 60 months is greater than the $8,500 then you can go with the lower rate.  Also, the $8,500 will be tax deductible in the year you close on the loan.