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The majority of people in US have adjustable-rate mortgages. When reading the consumer debt report, Americans have tooo much debt. Historically, adjustable-rate mortgages will save more money compared to a fixed rate mortgage BUT a lot of Americans just cannot cover their monthly payments when mortgage rates move up.
Some mortgages come with NO DOWN payment and/or a small down payment! That is just ridicious! People get sucked by paying nothing upfront and they will pay for it in the end. I say pay as much as possible up front (at least 25% minimum). And let's not forget about the other types of loans... I see Americans buy Mercedes, BMW, luxury cars with loans. I'm sure that once rates go up, they will be in trouble.
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