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There can be penalties for selling if you are using an ARM and sell before the fixed date ends. The way it looks to me, is you use an ARM to save you some money, and then refinance when your fixed period is up.
When I was buying a house, the plan I was going for was 80/20 on a 3/1 ARM, saving almost $5,000 from a fixed 30yr loan in the 3 year period, since it was a 100% loan I didn't have to make a downpayment, but I still didn't have to pay mortgage insurance.
Just depends on your situation!
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