You guys make perfect sense. We bought and sold two homes from 2001 to 2006, but it’s a different era now, obviously.

We plan to stay for the full seven years. We have kids and are moving to an area with two 900-API schools — Discovery Elem. and San Elijo Middle School. (Yipee!)

If we sell solely because of a nasty rate reset, the transaction costs quickly eat away at the interest savings/bit lower principal balance, which appear fairly sizable on paper. The interest difference between the fixed and the hybrid ARM is $100 a month.