The internet is full of mortgage advice: both for first time buyers and veteran homeowners. And a lot of it is good, sound information. However, just because something is on the internet doesn’t mean it’s true! Make sure you speak to a legitimate finance counselor before making any rash decisions based on a simple Google search. Not everything will work out for you, and you need to look at your own individual needs before acting. This article by Tony Moton at Yahoo Homes has a list of bad mortgage advice that people often follow without thinking it through:
The kicker is that interest payments over the course of the loan can be quite substantial when compared to mortgages with shorter terms and lower interest rates.
This is a great option for homeowners who plan on moving out of their house before the rate adjusts. However, this does carry some risk, since personal finances and the condition of the housing market may make moving difficult in a set amount of time.