Avoid Risky Mortgages

People love the idea of owning a home, and sometimes that allure makes people do the wrong thing. That's where risky mortgages come in. For decades, the 30-year fixed-rate mortgage was the gold standard. You put 20 percent down, you got a 30-year loan, and that was all she wrote. But in recent years the types of mortgages offered have made a mess of the marketplace, as can be seen with the current financial crisis. Now you can get interest-only loans, 40-year loans, adjustable rate mortgages, and so on. All of these new loans make it easier to make payments on a house, but the problem is they usually put you in a worse financial situation. Here's what you need to know to avoid some of the more risky home loans out there.