Low Payment Mortgage. Is A Hybrid Mortgage Loan For You?
Home finance that offers the mixed benefits of a fixed rate mortgage with the savings opportunities of an adjustable rate mortgage. A hybrid loan offers the benifits of a fixed payment period with the low rate of an ARM. You get the best of both worlds.
A hybrid loan gives you a fixed rate term, usually three, five, seven or ten years, with adjustable rates thereafter. Some of these loans have no fixed interest rate but instead offer a fixed payment based on a low interest rate of 1.25%. If interest rates fluctuate a borrower does not have any payment surprises.
The advantage of a hybrid loan is that it gives you a lower payment than you would typically receive with a 30 year mortgage.This can be an attractive loan choice for borrowers who expect to be selling their home within the first 10 years or who expect to have increased income in the future.Youll get the advantage of a lower fixed payment while youre living in the home.
