Avoid taking out an adjustable-rate mortgage
When buying a home, taking out an adjustable rate mortgage (ARM) may seem like the best idea. You often get a better deal compared to fixed rates.
But what happens if interest rates shoot through the roof? Your monthly payments will go up significantly, and you may find it impossible to keep up with them. Failing to make payments on time or altogether can damage your credit rating as well, making it more difficult to get a loan in the future.
