Mortgages to Avoid

Commonly called ARM Mortgage- A mortgage with an interest rate that changes based on the market conditions

The intention is to transfer the risk of higher interest rates to you and in return, the lender gives a lower rate up front

Since they can qualify for more home, many people find this mortgage appealing; however ,as many homeowners learned in the economic downturn, if your rate adjusts higher or you lose your job, your payment can quickly become too much for you to afford

A reverse mortgage is when a homeowner borrows against the equity in their home and obtains monthly, tax free, payments from the lender.

This mortgage is a bad idea because you are putting a paid for home at risk and the fees are horrible in fact , the FTC claims that reverse mortgages have the most fraud in the mortgage business

This is really never a good idea!