[rohjoh]

Another consideration is how much you are putting down, and how much you expect the house to appreciate in the next 5-7 years. I bought a house 4 years ago, and put 50% down. My income can vary month to month, and I wanted to have the security of low payments, and I knew my house would appreciate over the next 5-7 years. I went with a 5 year interest only loan. you really do not pay off much of your loan in the first 5 years, and if you know the house is going to appreciate, you are still building equity in the home. The other nice thing about interest only is 100% of your payment is tax deductable, since 100% of your payment is going to interest.