u/johnjohnson199800000

Looking for honest feedback from brokers and folks who’ve been through this. I’m closing on a new construction home in late August and I have two competing loan estimates. The builder (Lennar) offered $10K closing credit if I use their in-house lender at 6.3% fixed - I’m planning to walk away from that credit because the math seems better elsewhere, but I want a sanity check on whether I’m reading these LEs right. The basics: • Sale price: ~$690K • Loan amount: ~$620K (10% down) • Credit score: 800 • Planned stay: 7 years • Solo borrower, W2 income, MN Option A: Navy Federal 5/5 ARM • 6.0% rate • $0 origination • No PMI • $13,209 closing costs • 5/5 structure means no rate adjustment until year 11 (I’d be gone by then) • Loan is assumable • 5-year Treasury + 2% margin, 2/2/5 caps • APR 6.009% Option B: Blaze Credit Union 5/1 ARM • 5.5% rate (locked through end of June) • $200 origination + $550 broker admin fee • PMI $88/month • $16,962 closing costs • 5/1 structure - adjusts annually after year 5 • Not assumable • 1-year Treasury + 2.75% margin, 2/2/5 caps • APR 6.166% The way I’m thinking about it: Blaze saves me ~$185/month in P&I but I pay $88 PMI, so net ~$96/month savings. Over 5 years that’s ~$5,800. But Blaze has $3,750 more in closing costs and a higher APR. Navy Fed costs more monthly in years 1-5 but has zero adjustment risk if I exit at year 7 as planned. Blaze would face two annual adjustments before I’m out. I’m leaning Blaze because the rate is locked and rates have been climbing (we’re in the mid-6s nationally now), but the 5/5 structure on Navy Fed feels like meaningful insurance. I’m trying to decide if I should push Navy Fed for a rate match before committing to Blaze. Questions for the experts: 1. Am I reading these right? Anything that should be a red flag that I’m missing? 2. Is the 5/5 ARM no-PMI structure worth the 50 bps higher rate for a 7-year hold? 3. The Blaze APR is 6.166% on a 5.5% note rate - that 0.67% APR-to-rate spread feels high. Is that the PMI driving it, or are there fees baked in I should question? 4. Any negotiation leverage I’m leaving on the table here? 5. For those who’ve done Navy Fed rate matches - how flexible are they typically? Worth pursuing? Both LEs attached, fully redacted of personal info. Appreciate any wisdom.