First of all, if you were in the business a few years ago, why are you asking what type of loan you should be committing yourself on a faceless blog?
Early nineties were wrought with balloons, and not the ones that are filled withe helium. I think you’re a troll. A newbie homebuyer that might/might not be already in escrow and is wondering if that 7/1 ARM is the best choice. Let me give you some free advice from someone that lives and breathes this market, and not a cubicle gopher that post on this blog hoping the market tanks (and affecting the economy as a whole)…go with the traditional mortgage. The 7/1 or 5/1 versus the 30 year isn’t that big of a difference. If $100-$150 is going to put a crimp in your budget then you’re better off renting.
I’ve posted on this blog in the past, and I read it for kicks, but to ask for advice on a blog is beyond what I call sound advice. There’s no accountability. Just faceless people giving their 2 cents…like walking down a street and asking random people for financial advice.