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OK. While every city and area will have both good or bad people in it, if you want to know the reputation of MLT, here it is.
If you:
Do drugs
drink
break the law
are on welfare
You should:
live in Mountlake Terrace.
The reality? I am not totally sure, I don't live there. I do work in that area (I drive for a living) and I can tell you that for the most part, MLT is pretty run down. Personally, I would not chose to live there.
In contrast, Edmonds (other side of I-5) is considered to be a great city, but if you see the homes just on the other side of 5, they look just like MLT.
If you have the opportunity to go a little farther east, Brier is OK, just don't speed (they make plenty off of tickets).
So, are you working in downtown seattle? If so, there are other areas to look at.
The dufferz
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