A Hybrid ARM loan offers a steady rate for the first few years.
Planning on living in your home for a short period of time? A hybrid ARM mortgage, also called fixed-period ARM, combines features of both fixed-rate and adjustable-rate mortgages and may be right for you.
If you choose this loan program, you can expect to have your interest rate be fixed, or unchanged, for the first part of the loan period, usually between 3-10 years. During the remainder of the loan, the rate is adjustable and may fluctuate.
After the initial period of stability, the loan can possibly be refinanced to maintain the same low fixed rate, before the adjustable rate kicks in. Alternatively, you may move after reaping the benefits of the low rate during the initial term.
Want to learn more? Read here.
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