A Hybrid Mortgage is a combination of the features of a fixed rate mortgage and an adjustable rate mortgage. In an environment where rates are rising every day, this kind of mortgage provides with an alternative path to have a mortgage with interest rate security and lower monthly payments.

Your initial interest rate is fixed for a period of 3, 5, 7 or 10 years with a hybrid mortgage. When the initial period is over, the mortgage converts to an adjustable mortgage or ARM, for the rest of the loan term.

With a hybrid mortgage you have to pay less for a fixed rate loan and initial rate is lower with shorter fixed term. The interest rate adjusts only once and after the initial adjustment, a fixed rate is maintained over the balance period. The mortgage never goes beyond 6 percent points above the old rate.

This kind of mortgage is not a good option for borrowers planning to be in their home for more than 10 years. People who plan to sell their home or refinance in five to seven years can go for this loan.

More References

---

SWFFirst.Com – Your avenue to home ownership, apply on-line today and be on your way to owning your own home – it’s easy!

Funding Solutions facilitates the sale of existing private mortgage notes, portfolios of residential or commercial mortgage notes or can arrange point of sale funding, also called table funding or simultaneous closing.

Mobile Home Loans – Blue Coast Home Loans provides high-quality home loans for both new home purchases and refinances. Our corporate offices are located in Orange County, California.