I am very weary of the rising housing prices. I am not ready now but I will be ready to buy a house within one year and I am afraid the prices would have risen by then.
Can you tell me your opinion of why prices will rise/fall with reasons?
Also if I go for a 30 yr fixed rate I will have to pay substantially more interest for the first 6 years at least rather than a 5/1 ARM.?
Can you tell me what are the factors responsible for changing the ARM? i.e. say I take a 5/1 ARM at 2.75% start rate with 1/1/5 caps on rate increase, what will my rate be for the 6th yr, 7th yr, 8th yr and so on.
Thank you. Appreciate your responses.
Source: http://www.zillow.com/advice-thread/Effect-of-QE3/461548/
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