... if a 30 (the
way to go IMHO based on historical interest rates) then she's getting
ripped off.


NOYB wrote:
Not really. The average 30 year fixed rate in most of the east coast
markets is over 6.3%...which is what John H said his daughter was getting.
Plus, that 6.3% is with points.

I assumed his daughter was also in the DC area, not necessarily a valid
assumption.

In any event, looking at macroeconomic events and doing the math, over
the next 30 years it seems almost a certainty that interest rates will
go up, and stay up, enough to make a 30 year mortgage at current rates
very attractive.



I would have locked a 30-year fixed, but I couldn't afford a fully amortized
(interest and principle) 30 year fixed loan at this point in my life.

Not to get personal, but this suggests you have too much house.

... In 5
years, my practice is paid off and I can afford to pay the principle. At
that point, I can either refinance the loan, or let it adjust to the new
rate.

Paying "interest only" is not a great idea unless: 1) housing is
appreciating very rapidly, and 2) your income will be significantly higher
in the near future...at which time you can pay a fully amortized payment
which includes principle.

Agreed. #2 is not an assumption a real conservative would make, though.

DSK