Compare Loan product for Primary Home

[Sujith Kakulamarri]

I am a small real estate investor now looking for primary residence. I have 2 loan product options wondering which one is better.  Please advice. 

Parameters	Product 1 30 year - 5 year ARM NO PMI	Product 2 30 year FIXED Lender Paid PMI	Difference
Purchase Price	$400,000	$400,000
Down Pymt %	10%	5%	5%
Down Pymt $	$40,000	$20,000	$20,000
Loan Amount	$360,000.00	$380,000.00	$(20,000.00)	I can probably make $200/month using this $20000 to offset additional monthly payment if I choose Product 2. Am I thinking correct.
Annual Interest Rate	0.0425	0.04625	-0.00375
Loan Period in Years	30	30	0
Scheduled payment	$1,770.98	$1,953.73	-$182.75
No of Payments	360	360	0
Total Interest	$277,554.10	$323,342.86	-$45,788.76
Total Payments By the End of Term	$637,554.10	$703,342.86	-$65,788.76