Which ones are the best? So far my family has lectured me about 800 times not to do an ARM loan.

Depends on what you want to do. If you know you are definitely going to be moving on in a few years, why not do an ARM with a lower interest rate?

Stay away from the arm loans unless you are absolutely certain that you will be able to re-fi again before the end of the first term once your improve your ratios. You have to make a serious commitment to paying extra prinicpal monthly or you can get yourself screwed in a hurry.

ARMs are right for some people.  I don't plan to stay in my house for the full 30 years.  I'll be out in 3-7 years most likely so I went with a 7/1 ARM.

If you want to stay there, 15 yr is the best solution as far as how much interest you pay, but the monthly payments will be higher.  30 yr fixed is the old style traditional way, not a bad choice.

Interest-only loans are not good unless you live in some place that will shoot up in value and want to sell to make money.

We are in what could possibly be our last house. 15 yr note and paying an extra $600 a month on the priciple. The loan will be paid off app 89 months sooner and with $25K less interest paid.

$25,000.00 less interest.  

30 yr mort are a joke in my opinion.  Fixed rate.

Look at the above numbers and think about fiscal responsibility. Do you need a gas piston upper ?  Do you need 6 or 8 AR's?  Have some fun but take care of your future.

rj

Arms actually can be a pretty good deal depends on the rate difference, between a arm and a fixed rate alternative. I got a 5-1 arm at 4.25% when 30-year was 5.75.  Mine has a limit on how much they can raise the rate also, it is around 2% the first adjustment and 4% over the life. Over thirty years worse case I pay $198,780 for a 5-1arm based on 4.25% fixed for 5-years with a loan amount of $100,000, than rising to 6.25% for 5-years and rising to 8.25% for the last 20-years, that is worse case, rates may drop or I might move. The 30-year fixed will cost me at 5.75% on $100,000, $210,086 over the same period. The proof is in the numbers.  Also it is a personal choice, can I accept the risk and possible get the reward, also is it likely I am going to move at some point? Same with points it is all in the munbers and risk.