Maybe. Hybrids can be a good thing given the proper owner. And regardless of what you may hear about hybrids being the next new thing, hybrids have ทาวน์โฮมมือสอง ราคาถูก been around for decades, even before gas prices hit $4.00 per gallon. But we're not talking about a car; we're talking about your mortgage.

There are basically two types of mortgage loans, fixed and adjustable. A fixed rate is just that, it's fixed throughout the term of the loan and the payment never changes because the rate never changes. An adjustable rate mortgage, or ARM, can change throughout the course of a loan based upon a predetermined agreement between the lender and the borrower.

The third type is really not a type at all but a different version of an ARM.

A hybrid may look and feel like a cross between a fixed rate loan and an ARM, but in reality it's an adjustable rate mortgage that is fixed for an initial loan term before changing back into its normal, adjustable self.

A hybrid is typically listed as 5/1 or 3/1. The "5" in a 5/1 ARM indicates that the initial rate is fixed before turning into an ARM that adjusts once per year, or the "1" in the 5/1 moniker. The 3/1, also a hybrid, acts the very same way except the initial fixed rate term is for 3 years. Why a hybrid?

Hybrids are slightly lower than fixed rate loans and slightly higher than an adjustable rate mortgage. That is during their initial fixed rate term. After that, it's just like any other ARM.

If you're considering financing real estate for a short term, say anything less than five or three years, then you may want to consider a hybrid in order to get your optimal rate. There is some risk with a hybrid as with any ARM, but if short term is in your books, then take a test drive. See if a hybrid is your best financial vehicle.

Create Date : 19 กันยายน 2562
Last Update : 19 กันยายน 2562 14:09:35 น.		0 comments
Counter : 61 Pageviews.
Share Tweet