[quote=Former SD resident] we don’t really want to pay anything out of pocket and only plan to stay in our current home for a few more years.[/quote]

1. What is your current rate and balance ?
2. If you are certain that you will only stay for a few more years,(Less than 6) then also check on a 5yr ARM. The rate will be lower.

Paying out of pocket is not the worst thing if it saves you enough in interest. You are going to pay one way or the other, but if you have the equity, you can add the cost to your loan balance without any out of pocket expense.

You are not likely to get much credit on a 5yr ARM, but will get a lower rate.
The credit is much larger on a 30yr fixed, but the rate will be higher.

Depending on your current rate/balance/situation, you may be able to save a substantial amount with a 5yr ARM, even with a cost.

You will pay a premium to fix the rate for 30yrs, which you may not need. Another option is a 7yr ARM if you want another 2yrs of security.