Hybrid Mortgage loan

Hybrid mortgage loan with fixed rate, interest only option.

Hybrid loans are a cross between a adjustable mortgage and a payment option arm. Most payment option arms start at 1% or there about's, where the adjustable arms start in the mid 5's. A hybrid mortgage loan, will start at a slightly elevated rate of 2.5% to 4.5% and remain fixed at that rate for 3 to 5 years.


The difference between what your normal amortized payment and the interest only portion of the hybrid payment will be added to your loan balance each month. So if interest only portion is $400 and Amortized payment is $500, then $100 will be added to loan balance every month until it reaches ceiling. The ceiling is the maximum that can be added to loan balance before it switches to fully amortized payment and the hybrid option goes away. The ceiling is usually 110% to 120% of the original loan balance. As with a normal "Payment Option Arm" you have the option to make the minimum payment based on the low rate, an interest only payment, or the fully amortized payment, the more you pay the less gets added to loan balance each month.


Advantages of Hybrid Mortgage


Dis-Advantages of Hybrid Mortgage







Conventional Programs

30 Year Mortgage Loan
Adjustable Mortgage Loan
Hybrid Mortgage loan
Interest Only Mortgage Loan



Mortgage Programs

Conventional Loan Programs
Government Mortgage Programs
Jumbo Loan Programs
Subprime Loan Programs
Home Equity Loan Programs