2% per adjustment, 4% lifetime. So if it adjusted now, it would be 2% over what we have now, which still isn't bad. Point is, 2% change over 5 years gives you time to prepare. What if it adjusts every 6 months up? No thanks. Too risky even for me, and I've never had a fixed mortgage.

That's interesting. I was credit-adverse for YEARS. When I learned how to manipulate the system though, plastic became a HUGE asset. I run EVERYTHING thru it now, and accrue points. Those points have paid for Home Depot gift cards (when Amex runs the 20% off sale) plane tickets, etc.

Most ARM's have a cap on the change. Our 5/5 is capped at a 2% increase. 5 years is a long time to plan for that and refinance if needed. 6 months is just way too volatile.

We have a 5/5 ARM from PenFed, which is 5 years, then reset every 5.

So I was about to say the 7/6 ARM, and then realized it's 7 with a 6 month adjustment. DO NOT DO THAT. Not for that small a savings.

30 year no question.

Call me shocked that you can have a high 700's with a bankruptcy only 5 years ago. You must have nailed every single payment and worked on credit diligently. Kudos!