Questions on decisions on 5/1 arm vs 30 year fixed

[Buyan Thyagarajan]

Hi Guys,

I am looking at a refinancing on my property in PA area where I am considering a 5/1 arm vs 30 year fixed loan option. I am assuming 5/1 arm is a better option given the interest rates are subject to change with Fed decision and this will give me a lower monthly payment option. The only con which i need to confirm is whether 5/1 arm interests can be deductible from a tax stand point. 30 year fixed is an option but the interest rates on commercial are around 8 to 9 percent compared to 5/1 around 6 percent. Any thoughts on pros and cons on 5/1 vs 30 year fixed given these economic conditions?

Buyan