If I get an ARM will it change every day depending on what rates are?

Arms are generally fixed for a period from 1 to 10 years depending on which product you choose. After the fixed period your rate will adjust according to the index and margin it is tied to.

The short term locks offer the lowest rate providing you with the lowest payment. Should you decide to rent in 3 yrs- Consider.a no/low cost 3yr lock now & later you can extend your terms 5 or 7yr lock before you move out... While it is still considered your primary residence. Feel free to contact me direct and I will send you payment comparisons.

Arms (or adjustable rate mortgages) are a little complex to understand. As mentioned below, you can generally choose a term between 1 and 10 years. Common terms are 2, 3 and 5 years. The basic idea is that you will have the benefit of a lower rate (and payment) for that fixed period of time. You will want to have a plan for when the short term rate expires, generally to either refinance or sell. Otherwise you may be faced with "payment shock" when the rate it adjusts to is a lot higher. ARMS are tied to one of many different indexes and you should find out which one before signing up for one. Arms also have yearly caps on them after the initial "teaser rate" period. For instance, if you take out a 3 year adjustable, the rate will be fixed for the first 3 years, but then the rate may be capped by "only" increasing 2 points per year after that, or 6 points over the life of the loan. Often the short term savings is not worth the long term risk, plus you will incur costs to refinance at some point which no one ever figures in. Do your homework. If you need more assistance, please feel free to contact us at http://www.netequityloans.com. Best of luck to you!