Rental ARMs vs 15yr/30yr

[Roy Mitle]

My mortgage broker is saying that the rate on rental Fannie Mae ARMs is very bad compared to 30yr/15yr fixed. While the latter is only 1/4-1/2 point above owner occupied house, the former is 1 point above.

I am looking at 5/1 or 7/1 ARM and while I can get a large delta for my primary residence I don't see the delta (its almost zero) for rental. What do other people do. I am not interested in many rentals so I am not considering 30yr fixed just so that I can have more rentals.

thanks