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Advantages of an Adjustable Rate Mortgage
Understanding the Terms of an Adjustable Rate Mortgage - the 4 key points
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Adjustable Rate Mortgage
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Hybrid ARM's
Hybrid ARM's are mortgages that are a combination of fixed and adjustable rates.
The name "Hybrid ARM" has become less used in recent years as they have become more of the standard rather than the exception. This term came about because originally all ARM's started to adjust immediately, whether that be after the first month or after the first year.
Banks began to offer ARM products that would stay as a fixed rate for a period of time and then become a true ARM and this is where the name hybrid ARM came from. The banks wanted to distinguish their new product from the original ARM that many shyed away from because they wanted to have some certainty that their mortgage payment would stay steady for at least some period of time.
We now know a hybrid ARM as 3 year ARM's, 5 year ARM's, 7 year ARM's and although the name is still used in certain circles, most borrowers understand that they are getting a product that will only stay fixed for the number of years in the name.
In comparison to a true ARM that adjusts immediately, you will pay higher and higher interest rates the longer the period of time that the payment will stay fixed.
Please read the Article on Advantages of Adjustable Rate Mortgages for more details
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Harry
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email Harry@dailyinterest.com or reach me by phone Office 1-248-548-7655 Cell 1-248-514-9000 |
Drew
Smith
email drew@dailyinterest.com or reach me by phone Office 1-248-548-7655 Cell 1-248-703-7770 |
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