Which mortgage is the most risky and why?

Which mortgage is the most risky and why?

Ron Goodlin (Mortgage Banker and Broker, The Goodlin Group) gives expert video advice on: Is it possible to pay off my mortgage loan early?; Is there a penalty for paying off my mortgage loan early? and more...

The mortgage that is the most risky would be a one-month adjustable product. The term out there for it is a negative amortization loan. The index is your concern. The index will move every day; it's like the stock market. So, you really want to avoid those types of loans unless you really, completely understand how they're being used. It's really more of a short-term loan, so it's not something you'd want to get into unless you're a very savvy investor.