Where you are getting ready to purchase a home there is always a decision to be made on what type of loan will be best for your situation. With the proliferation of Adjustable Rate Mortgages or ARMs in the past 5 years, the Federal Reserve has posted a tool on it's website to help buyers compare the short AND long term costs of both types of funding.
I checked this tool out and it works pretty well. Make sure you have your propesed rates from your lender before you sit down to use this. You can also just make up rates or use current market rates if you want. The tool does make you enter a "projected" adjustment on your ARM after the initial period. That is, how many percentage points do you think interest rates will go up or down during the "fixed" period. I used +1% & +2% as tests. I did not use a negative percentage because I don't expect interest rates to go down too much.
If you are looking into financing currently, you may want to check this tool out. Maybe you could have your mortgage advisor go through it with you as a way to help decide what option fits the best!
Here is the link to the Mortgage Comparison Calculator on the Federal Reserve website:
https://www.federalreserve.gov/apps/mortcalc/
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