mortgage combines features of both a fixed rate and an adjustable
rate mortgage. With a hybrid mortgage your initial interest
rate is fixed for a specific period of years such as 3, 5, 7 or 10
years. After the initial fixed term the hybrid mortgage
converts to an adjustable rate mortgage or ARM for the balance of
the mortgage term.
Essentially, Hybrid mortgages allow you to pay less for a fixed-rate
loan and as a rule of thumb, the shorter the fixed term of the loan,
the lower your initial interest rate. Also with a hybrid
mortgage you interest rate adjust only once and after that initial
adjustment, the mortgage maintains a fixed rate for the remaining
years of your term. Additionally, your new mortgage rate can
never be exceed than six percentage points above your old rate.
Mortgage Calculators - Use our mortgage calculators to calculate
a mortgage payment, compare different mortgage loan options, and
calculate how much mortgage you can afford.