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Only this one, I see interest only loans as the devil, and I also see them as a way of ppl "counting their chickens, before the eggs have hatched" Wyndhy said..."planning on selling this one within the next several years"

Ok, I know that it seems like you prolly will do that, but what happens if the economy goes down the drain? Then, the time comes that you're going to have to start paying the "real" payment, which will be much much more, and so you want to unload it, you may be able to do that, but I've seen ppl do that more than once to "get out from under it" at a loss, why? Thats nuts, and since you're rolling existing equity over, wtf do you need an interest only loan for? Interest only was created as a way of getting ppl into something that they think they'll be able to afford in a few years, same thing with an ARM, they were in my opinion created for Doctors that haven't finished their residency yet, and so therefore aren't making much more than a first year nurse, but once they finish their residency, will make their income grow exponentially. I say they are a bad deal. Beat up your broker, and tell him that YOU will pay the closing costs out of your pocket, tell him to lose any "Points in the back" for those of you who doint know, many times lenders will advertise a rate that isn't really prime, and say it is (they just run a disclaimer saying that market conditions change daily, even though they haven't changed for close to 3 or 4 years) so then you think, well hell, I can get that rate, no closing costs out of my pocket and save 20-200 dollars a month! Well, chances are, you're paying the broker to not give you the best rate available, if they give you a good rate, but say it's 1 percent over actual Prime and your loan is for 200,000 their commission will be 2000. (1% x Loan Value) Brokers often pay the closing costs out of their commission to get "no closing costs" but thats bogus, their are ALWAYS ALWAYS ALWAYS closing costs, just because you dont see the bill doesn't mean that someone isn't paying it. I say get a fixed rate, or a product called a 2-1 buydown, or ask if they have even better terms than that.

Also, I highly suggest asking about FHA/VA financing, everyone is eligible, and once you have a FHA loan, there truly AREN'T any closing costs :P and, you dont have to get a new appraisal. If you want to, you could refi every 3 months, no cost to you :P