You are considering the purchase of a $250,000 house using a regular fixed rate mortgage loan with a 20% down payment; what is the monthly payment (not including taxes and insurance) using a 30-year (5.0%), 20-year (4.50%), and a 15-year (4.00%)? How much total interest would you pay using the three different loans over the course of the loan?

What are the reasons you would consider using a 5/1 adjustable rate mortgage? Would it be beneficial in today's current interest rate environment to consider using an ARM?