Most homeowners don’t fully understand the risks associated with taking on alternative mortgages that allow interest-only payments or negative amortization. You may have seen or heard the ads for Quicken Loans or similar, just know this, with some of these loans the payments are really low but after several years of payments you may owe more on the house than when you bought it.
While rates are low most people are best served with a 30 year fixed rate. If the payments are more than you can handle then you should probably get a cheaper house.
