10 yr arm vs. 30 year Mortgage

[Huser Dee]

We are new to this and trying to see what would be our best options for our primary residence mortgage in Bay Area, CA

$900,000 mortgage

3.625% int - 10 yr arm - $7,000 closing costs
4.00% int - 30 yr fixes - $7,000 closing
Both our credit scores are above 780.

We are planning to keep this property for at least 10 to 15 years, if not more. Me and my spouse are in late thirty and mid forties and have a kid who will go to college in 10 years. 

I am leaning towards 10 yr arm and spouse towards 30 fixed, reasoning from other end is, if we refinance we end up paying more interest and longer term. I want to do the 10 yr as the interest is low and we don’t know in 10 years we may rent it or sell it for an upgrade or downgrade.

What is the norm in these situations?

[Steve Vaughan]

The spread isn't enough for the adjustable rate risk IMO.  10 yrs goes quickly. We have been in our house 11 yrs already. Got a 15yr fixed in 2012 and glad for that.

Bond yields just hit a 4yr high. Either way I'd lock in soon.