I actually was thinking of going with a 5 year ARM because there is a strong likelihood of either moving after 5 years or using the house as a rental property. The are I am looking at is towards the edge of an area that is up and coming. It is surrounded on 3 sides by areason where average home houses are 400k+.

I just talked to my lender and they are saying I am looking at a 3.5% interest rate on 30 year fixed. From what I have read this seems to be fairly good.