What do you do when mortgage interest rates jump up 2% in 4 months?
Don’t go LONG, go SHORT use a HYBRID ARM loan
ARM means adjustable-rate mortgage. But some people are not comfortable with the idea that their mortgage payment and that the interest rate will start going up in 12 months.
WE have a solution in the HYBRID mortgage rate which is a FIXED period ARM loan. Yes, a combination or blend of both!
The mortgage would be fixed at a rate 1% lower than the 30-year fixed for 3,5,7 or 10 years and then start the interest rate moving or adjusting. The shorter the fixed period the lower that start rate will be. The 10-year fixed being very close in rate to the 30-year fixed.
Another great option with HYBRIDS is often you can go interest only
What happens after the fixed rate period? It becomes adjustable!
Just like an adjustable-rate mortgage there is a floor which is the start rate, an INDEX that the rate is based on, A MARGIN for when it starts adjusting and a lifetime CAP or CEILING.
So, in these higher interest rate times, give yourself a lower payment and qualify easier with a HYBRID ARM loan.
To learn more about ARMS see our video.