Most people pay less attention to their home loan than they do to their investment portfolio.
Some have adjustable-rate loans that offer cheap payments for the first few years. Those loans have enabled some families to stretch and buy the new home they loved but didn't think they could afford.
If you have any kind of mortgage where the payment terms change over time, you should be asking yourself: How likely is it that you'll get hit with a big jump in your monthly payment that would mess up your personal finances?
The easiest way out:
Switch into a 30-year fixed rate. The national average is currently 6.27% according to consumer-loan data provider HSH Associates. That's low by historical standards, and better than most rates available in past 18 months.
Source: The Wall Street Journal, March 10, 2007