FIXED!!!! 100% FIXED!!! So many people get adjustable thinking they'll move before it adjusts.. what happens if GOD FORBID something happens to you or your spouse, or his job, or yours if you have one, or what if you have to use your cash to fix a car or something... there are SO many things that could happen to not allow you to refinance or not allow you to move! Go fixed!!!

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Stay at home mom to my 3 boys... ages 5, 3 & 1!

I can do all things through CHRIST who strengthens me. Philippians 4:13

I read and listen to a myriad of personal finance authors, and most say that 20% down and fixed rate are the way to go. Given today's market, I believe even more strongly, that that is sound advice.

We bought our first and then our current house that way. Often, we receive adjustable rate offers with much lower monthly payments, but we're staying put.

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Attaining financial freedom is like eating an elephant . . . it takes one bite at a time.

I recommend NOT doing an ARM. Our monthly payment went from $2400 to $2900 with just 25 days of warning!!!!! Don't do it!!!!!!!! We are desperately trying to refinance to a 30 year fixed, but this has put us in such debt and we paid the extra $500 to our mortgage and not our other bills, so now we don't qualify for a refi!!! We're stuck and it (pardon me) sux!!!! Don't do it, don't do it!!!!

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I would only do a fixed mortgage if it were me. That's what we have. And our interest is pretty high at 8.5% but at least we know it will not go up.

GET A FIXED RATE!!! Our neighbor's house was just auctioned off in foreclosure. It's awful. He had an ARM and unfortunately fell on some hard times financially and wasn't able to refinance. His mortgage went up and he was unable to pay and with the real estate market, he couldn't sell either. It's such a sad story, but one that is playing out day after day around the country. Best bet is to stay with a Fixed Rate.

I've heard so many horror stories about adjustable rate mortgages. I would strongly suggest a fixed one. We recently bought our house and were planning to get a VA loan (no down payment)...but ended up getting an 80/20 loan because there were added fees with the VA loan. We have a 30 year fixed rate loan on 80% and a 20 year fixed rate loan on 20%. The 20 year loan is one percentage point higher but we build equity faster and we don't have PMI. It was the best choice for us. If you can, I would save up a 20% or more down payment. Just my 2 cents.

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Jenny, wife to Brad, mommy to two crazy little kids with one on the way!

Never, ever, ever get an ARM! They are the quickest way to put you into financial distress. I have owned two homes, the first when I was 21, and would never even consider getting an ARM. How can you budget effectively when you can not be certain in 10 years what you mortgage will be? Which should be your largest monthly bill. Most people don't even know when their ARM will reset, which means your interest rate will adjust, even though it is written into their contracts at signing. Usually they are at seven year intervals to my knowledge. Right now the interest rates are low and the feds are planning on dropping them further. That however is because the dollar is so weak right now suffering behind the yen. But what will you do when the economy turns and improves and your mortgage is hundreds more than what you had planned on? In addition, using an escrow account especially if this is a first home purchase is highly recommended. Your payment may be higher each month but you will not have the bill each half for your taxes and insurance. You will simply pay them in installments alongside your mortgage each month and be done with it. I did this with my first home and loved it. Right now we have a standard fixed mortgage and our half year taxes are 1600.00 if you can't manage even an extra 500 bill than definitely do escrow. It will save you a lot of grief. You can also find a lot of information on this type of thing online, I like MSN money. I am always surfing it. In short FIXED RATE ONLY!

Ginger .. I've been reading your posts today and you sound like my kind of Mommysaver! Welcome aboard!

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Definitely fixed. But it looks as if the Fed Reserve might drop discount rates again, maybe dramatically, so it is probably worth waiting until after Jan 30 to lock in your rate.

This is my completely non-expert, amateur follower opinion, of course; I just know they have been telegraphing rate drops and everyone thinks they will come.

Something for those who are talking about refinancing to keep in mind, too, maybe?