Hybrid Mortgage
Hybrid Mortgage - The term is fixed. The initial rate and mortgage payments are fixed for a longer period, before a rate adjustment, than standard Arm’s. A onetime adjustment at a designated interval occurs for the rest of the term (Unless the product converts to a new ARM product). These products usually have one or more of the following features: (a) Annual cap (b) Lifetime cap (c) Margin (d) Index.

Benefits: When financial goals are clear (Such as timeframe of property ownership, and cash flow needs), and calculations are made using the fixed elements of the adjustable rate mortgage, the possibility of huge monetary savings exists without risk or rate shock (when the rate increases beyond affordability.) The lower payment will allow you to afford more house (you can purchase a larger house.) Most of the interest is tax deductible, and can be structured to be 100% deductible in some cases.

Hybrid Products: 5yr. two step, 5yr. balloon, 7yr. two step, 7yr. convert to 1Yr., 7yr. balloon, 10 year convert to 1yr. arm, 10/15yr.fixed balloon with 30yr. amortization. Click here find out how a hybrid mortgage can benefit you.