<prompt> Human: I am about to look at a condo that I will most likely put an offer in. I have a pre-approval already.. but now I am debating arm vs fixed mortgage.So the condo is 175K. I am putting a downpayment about 70K 40.So I am looking at my credit union and I have can get a 20 year fixed for 3.75 or a 30 yr fixed for 4.00. I can afford both, which I may opt for the 20 year.BUt the 51 ARM first Time homebuyer interest rate is 2.363... THis is making me consider this.. I think I will keep this condo long-term.. since the condo can be turned into a rental property easily. I am starting to learn a bit more about Arm..Just to make sure I am reading my CU 51 ARM First time homebuyer right... so the interest rate is 2.365 for the first 5 years fixed.. after 5 years, it can change based on the index ratemargin rate.. but cant increase or decrease more than 2 due to the cap.. After that, every year my rate would change based on the index ratemargin and cant increasedecrease more than 2.. and overall my rate cant change more than 6 increasedecrease. Is this right?What should I really consider when deciding between these two mortgages? Based on this, I think an ARM sounds like a better deal but I am not sure.  <response>: ARM means itll adjust. Usually those are recommended in two types of scenarios.1 You are flipping a house or only planning on keeping it short term.2 You think the interest rates will go down more after the adjustment period.Honestly I dont think the rates will go down at all and might jump up 2-3 points after 5 years at least. The difference in interest between 2 and 4 on like a 100k loan isnt a lot. Do the 20 year fixed if you can afford it or get the 30 year to play it safe and pay extra on the principal every month. If you are planning on keeping the place for a long time, stay away from an ARM loan at this time. The rates arent going down. 