Mortgage Rates seem to be dropping pretty consistently...

No fixed rates are still the way to go- best is to do no points fixed and reduxe your term- the length of repayment.

yield curve very flat thus not much benefit ( if any) for a borrower to consider an arm versus a fixed rate ..also not much rebate pricing avaiable on ARMS whereas fixed loans have this feature

In my humble 20+ year experience, there is, and never has been anything wrong with getting an adjustable loan. It isn't automatically good, nor automatically bad. It's just another tool in the toolbox. I think it is a great tool to save money for a lot of people. For example, if you are pretty sure you will only be in the home for 5 to 7-years, taking the lower interest rate 5/1 ARM, which is fixed for the first 5-years could be an awesome tool. Why pay a 30-year rate if you won't be there that long. On the other hand, if you are going to be in the home a really long time, and are only looking at an ARM because you really can't afford the payment today, and have no risk tolerance for changes in the future, not only is an ARM a poor choice, but you are also buying too expensive a house. I lend in MN, WI, and SD and can be found at JoeMetzler.com. NMLS274132

Every loan is different.. If you knew you were only going to be in your home for 3 to 5 years.. then doing a 5 year ARM might make sense.. but if you knew you where going to stay put for 20 years.. then maybe a fixed rate is a better option.. More info needed to accurately answer what's best for you.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

the best loan for you will depend on how long you plan to live in the home and carry the debt