March 15, 2005
Mellody Hobson offers some tips to consumers who want to take advantage of zero-percent financing offers.

Know your needs and limits: Buyers should assess how much they can comfortably afford and how long they'll be staying in their home when determining which mortgage option is right for them.
Consider fixed-rate mortgages: Adjustable-rate mortgages can be risky for those on a tight budget who cannot handle the impact of interest-rate fluctuations.
Watch out for zero-percent auto financing: To qualify, you must have excellent credit and be able to afford higher payments because the option is usually only available on loans of three years or less. If you take the zero-percent financing option as a clue to skip the negotiation on the price of the car, the sweetened finance deal may not be so sweet.