Hybrid Loans that let you pay all, a portion of, or no interest each month, depending on your choice. July 21
Just as the new kinds of hybrid cars were engineered in order to let drivers take advantage of different types of fuel that are more efficient, economical, and user-friendly, hybrid mortgages work in a similar way to provide homeowners with lots of financial flexibility. Hybrid loans are a relatively new concept, and they were created to help meet the changing demands of sophisticated consumers who want to have more control over their finances. Hybrid mortgages are especially designed to blend a variety of attractive mortgage features, to give homeowners more control of their monthly payments and interest rate options.
In the past we only had two basic choices, the fixed-rate mortgage and the ARM or adjustable rate mortgage. Hybrid mortgages combine features of both, and many hybrids let you start off at a lower rate than normal conventional loans. After a period of time the loan converts into an adjustable rate loan, so that you can enjoy the best of both worlds. Some innovative hybrids also let you decide each month whether you want to pay principal plus interest, reduced principal, or no principal and interest only, so you can also use features associated with interest-only loans. These features come in handy if your monthly income fluctuates. For instance, if you are a teacher whose income drops off dramatically during the summer months, you might use a hybrid and choose to pay interest only until the school semester starts again and your income rises.
To learn more about hybrid loans and what different kinds of features they offer, contact your mortgage lender. Shop around before you sign on the dotted line, to ensure that you get the most competitive loan from a lender that offers the best customer service.