One year or two makes a huge difference on origination fees versus rate effects particularly on $400K loan or so. Also, keep in mind, the market is neurotic at the moment. 1 yr ARM has the same payments (fees rolled in) as 3 year ARM which has about a $10 difference on 5 year ARM. Scarily, a 5 year IO is actually has a lower rate and fees according to bankrate.com than a 1yr ARM.
Of course, this is fluid time and those are going to whipsaw around over the next couple weeks if not disappear overnight.
