7/1 ARM Conforming Loan - is it a good deal

I am attempting to refinance my mortgage. Original loan was $134,000 balance is $107,000 (30 year fixed 5.5 interest rate) and I have 23 years left on the loan from Chase. I also have been making an extra payment every year. Value of my home is $127,000 (appraisal was done about a year and half ago). My current monthly payment is $1131 and my credit is excellent. I would first like to lower my monthly payments to have more disposable income as this payment doesn't leave me with much at the end of the month. I have never had a late payment. Also I would like to pay the home off sooner if possible. I have been offered a 7/1 conforming loan 3.5 interest rate. Is this a good deal for me. I am not really confortable with an ARM as it leaves too much to chance but I don't know enough about the product to make a good decision. by edyates5150 from Boulder, Colorado. Jan 19th 2011 Reply