<prompt> Human: Hi PF, I am currently processing on a home loan application. Our loan agent told us that the 30yr fixed has the same rate as 7ARM, which is 4.25 - 0.125. Is this normal? Our loan amount is about 600000. And usually the rate we saw everywhere else a 30yr loan is generally 0.5 higher rate than the 7ARM. Could it be because of the limit of access to lenders by the loan agency? Or is it just some kind of marketing trick? Should I shop around other banksbrokers for a possibly lower rate? Thanks!  <response>: Youd be getting a slightly lower interest rate for 7 years, after which the rate would change. We do not know what the rates will be in 7 years but we do know that rates are very low now. You could luck out and do well with the ARM, or it could be the biggest financial mistake of your life. I would go with the fixed rate loan, with 20 down. 