I’d take a 7-10 year interest only ARM

you people saying 30 year fixes are idiots who have no idea what you’re talking about.

I would go for the 30 year fixed rate mortgage. The difference in rates between a 30 year fixed and an ARM is .50%. With the fixed rate you’re locked in with yor interest rate. If rates go down, you can always refinance. Going with the ARM, rates have been going up, so why risk it?

Take the 30 year fixed and sleep well.

Too Expensive is right. I have both arms and fixed on my properties. You need to go with a 30 year fixed or a 30 year fixed interest only. The pricing on these is the same as the arms are right now and has been for about 6 months. For example you can get a 5 year arm and a 30 year fixed for the same price.

These are good websites for questions on mortgages:

I would totally use fixed rate mortgage now. For two reasons:

1. Fixed rate mortgage has similar rate as ARM. I think there is only 0.25 to 0.5% difference after fee.

2. Rate for fixed rate mortgage is near all time low. Last year was 5.7%. Now is only 6.5%.

I would suggest an interest only loan. The rate would be fixed anywhere from 7 - 10 years.