u/Pitch_dog

233k for a 3 bed one bath and 20 acres in rural Illinois, 7.25% 8/6 ARM w/ 20% down. It’s going to need a lot of TLC but we are very happy with the purchase. However; the mortgage process was a bit of a mess. I started with the bank that I invest with to make the down payment transfer easier. However almost immediately after I started the process the Fed raised rates.
They offered to lock in a 7.25% fixed rate. I shopped around to two other banks and they couldn’t beat that without making it a variable interest rate.
So I decided to move forward with them. Well that quickly became a mess. It is a long story but overall it was a very painful process but the real kicker was that at the last minute 3 days before closing my lender sent a document for me to sign with no explanation. It was another loan estimate but it said it was changed to a 7.25% rate for 8 years then was subject to change every 6 months and could increase to 12.5%. Sounded like a variable rate to me, so I called him and asked and he said that the only way he could keep it that low was to switch it to an 8/6 ARM.
However; he said I could refinance if rates drop to a fixed and 8 years is a long time.
My question is, was this a normal experience or should I be more worked up than I am about this or just be thankful I have a house?