Orange Mortgage from ING?

it's a standard 5 or 7 year ARM. percentage remains steady for that period of time and the readjusts. my friend used them a few years back and had no issues. they had an option to extend your rate for another X amount of years for $500 or so. i would get this mortgage if i would be certain that i will not live longer, or too much longer, than the fixed rate term.

Are you thinking of the Easy Orange or the Orange Mortgage?

The Orange Mortgage is a standard 5/1 or 7/1 ARM. Rates are currently advertised as 3.875% (5 year) / 4.125% (7 year) for loans below $500k and 4.375%/4.625% for loans above $500k.

The Easy Orange is a five-year jumbo loan, where you pay based on a 30-year amortization schedule but must pay off all remaining principal or refinance at the end of five years. The rate for that is currently 3.75% and not worth the additional risk, IMO, unless you absolutely have the free cash to pay off the loan at the end of five years. I believe it also *requires* biweekly autopay.

Both loans require at least 25% down, and neither are available for co-op or investment purchases.

You may have seen the rate for the Easy Orange and thought it was the Orange Mortgage, which is what I did. I've had various products with ING and am generally a fan of the company, though I've never had a mortgage with them.

I'd consider a 7/1 ARM because we plan to pay down quickly, but if rates stay where they are, we may be able to do a 15-year fixed loan with the same or similar rate and have the flexibility to pay the minimum if interest rates ever rise. (In other words, use cheap debt as a hedge against high inflation.)