| Subprime hybrid mortgages offer temporarily low | | | | your down payment to lower your rate or increase |
| rates for borrowers while they work to rebuild their | | | | the amount you qualify to borrow. |
| credit. With a sub-prime hybrid mortgage, you don't | | | | Hybrid Mortgage Lenders |
| have to pay PMI, saving hundreds a year. After two or | | | | Hybrid mortgages are offered by conventional and |
| three years of on time payments, you can then | | | | sub-prime lenders. Rates, fees, and terms will vary with |
| refinance for conventional mortgage rates. | | | | each lender. In order to find the best financing package, |
| Hybrid Mortgage Basics | | | | you should request quotes from several lenders |
| Since so many people refinance their home loans after | | | | before making a decision. |
| they have reestablished their credit, lenders created a | | | | Typically online financing companies waive or reduce |
| mortgage to offer maximum flexibility for borrowers. | | | | fees, so they are well worth checking out. You can |
| Hybrid mortgages are typically 1.5% lower than a | | | | also request quotes from traditional companies through |
| conventional loan for the first two or three years, | | | | their websites. Online mortgage brokers also make |
| depending on your mortgage terms. After that, the | | | | comparison shopping easy by offering several side by |
| rated becomes adjustable, rising and falling based on | | | | side quotes. |
| indexes. | | | | Refinancing Options |
| Lenders usually require a prepayment fee if the | | | | After you have had your hybrid for at least two years, |
| mortgage is paid off before two or three years. Since | | | | you should begin shopping to refinance your mortgage. |
| most borrowers use this period to establish good | | | | If you are planning to move within seven years, an |
| credit, the fee isn't a problem for most. You may also | | | | adjustable rate mortgage may offer you the lowest |
| be able to waive the fee by paying a point upon the | | | | rate. If you plan to stay put, a fixed rate mortgage can |
| loan's settlement. | | | | guarantee you a low rate over the course of your |
| A hybrid mortgage also allows you to borrow more | | | | loan. |
| than with a fixed rate mortgage since your monthly | | | | As with a sub-prime loan, compare lenders and |
| payments are lower. You may also decide to increase | | | | finance packages to find the best deal. |