Peggy,
In order to get the best answer for your question, you would need to tell the lender you want to work with about your future plans, financial needs and more. That way, he/she can help you figure out what is the best answer for you. However, here is a very general answer to your question:
If you have more than 20% equity, use the home as your primary residence, have good to excellent credit scores and sufficient income to qualify for a conventional loan, that is probably the better choice. If you plan to own the home longer than 5 years, a fixed rate mortgage would probably make more sense.
I hope this helps you.
Best regards,
Andres Gomez
704-488-4296 - Wed Nov 18, 2009