Eh, I think we're talking past each other because none of what you said really applies to what I think I'm saying. A 30year ARM gives you a lot more flexibilit

Eh, I think we're talking past each other because none of what you said really applies to what I think I'm saying. A 30year ARM gives you a lot more flexibility then a 15-year anything. I mean, you can pay off the 30 year in 30 years or 15 years or 5. Regarding the balloon payment-- not sure what you're missing here. Residential mortgages with balloon payments aren't really offered any more because of huge risk of default when the balloon payment is due.