 Sam
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 Posted: Wed Jun 09, 2004 1:28 am Post subject: Hybrid Mortgage: Combination of fixed and adjustable rate |
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Hybrid Mortgage is a type of Mortgage, which combines the features of both fixed and adjustable rate mortgage. It is also known as a 'two step mortgage' and 'alternative mortgage products'. It is a special type of 7/23 mortgage and 5/25 mortgage, which has one time rate adjustment after 5 or 7 years.
Features of hybrid mortgage are as following:
- It is a special type of adjustable rate mortgage.
- The loan will start from a fixed rate of interest at certain length of time,
and then later it will convert to an adjustable rate mortgage.
- There is no additional refinancing cost, no forms to complete, and no re-qualification necessary for making adjustments in interest rates.
- It adjusts only once, either at 5 years or 7 years.
For Example, Fannie Mae's two step mortgage and balloon mortgage. |
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