9 biggest mortgage mistakes - Interest.com


Interest.com ran an article, 9 Biggest Mortgage Mistakes, in which I was able to contribute.  It contains great information and tips on what to avoid if you you are getting a mortgage anytime soon.  

With fixed-rate mortgages priced above record lows, you might be tempted to grab an adjustable-rate mortgage.

But unless you’re planning to move within five to seven years, you’ll be better off financially sticking with a fixed-rate loan.

Rates are still historically low, so if you take out a fixed-rate loan now, you may never have to worry about refinancing. An ARM might offer you a lower payment now, but it will eventually reset, most likely at a higher rate.

”There is a lot of risk if rates rise and you cannot get out of the ARM at the right time,” says Phillip Christenson, a chartered financial analyst and owner of Phillip James Financial, a financial planning and investment management company in Plymouth, Minn.

You might not be able to refinance or afford the new payment once rates rise. Or the housing market could make it difficult to sell.

The entire slideshow can be found here.