The American people have been taking on a huge level of mortgage debt in recent years. The amount of debt has gone up by about 70 percent in the past five years, yet home values haven’t gone up nearly that much. It means we’ve been taking on large amounts of debt, and it’s the wrong type of debt. Two out of three dollars is floating rate debt instead of fixed rate, according to the Mortgage Bankers Association of America. Part of the problem is that people are taking out risky, interest only loans and creating risk for themselves. The only time it makes sense to take out these exotic loans is if you plan to be in a house for a very long time. And, even then, you may have to pay a pre-payment penalty. It’s simple to borrow for a home in ways that make sense. There are 5/1 ARMS and 7/1 ARMS, which give you a fixed rate for 5 or 7 years. These are the only safe product for a short-term residence. And, don't sign up for 40-year loans, which are all over the market today.