With mortgage rates near their
historic lows, fixed rate home mortgages are likely going to be a much better deal if you plan on living in the house for an
extended period of time, as when rates reset on ARM loans the prior short - term savings will likely be more than offset by the
higher rates for the duration of the loan, which can cause the interest - only loan payment to exceed the amoritizing 30 year fixed rate payments if mortgage rates spike
high enough.