NJ Fixed / Adjustable Combinations (Hybrid Loans)
A Hybrid loan combines the best features of both the fixed and adjustable loan into one attractive loan program.
Benefits of a Hybrid Mortgage:
- Initial fixed interest rate is below standard fixed rates
- Interest rate is set for a specific period of time to allow for less market risk
- Fixed term can be set to match financial goals
With a Hybrid loan, the interest rate is fixed for an agreed upon term and then adjusts yearly thereafter. For example, a 7/1 Hybrid loan is a 30 year loan, however, the interest rate is fixed for the next 7 years adjusting yearly thereafter.
This fixed/adjustable combination provides you with the benefit of knowing exactly what your payment will be for a “fixed” period of time and the” below market” interest rate advantage of an adjustable rate loan.
You might consider a hybrid loan if,
- You plan on moving in the next 5 to 10 years
- You only need the mortgage for a short period of time
- Your income will be increasing substantially in the near future
American United offers Hybrid mortgages in 3/1, 5/1,7/1 and 10/1 fixed options. We also have a unique 30/15 option, where the interest rate is fixed at a below market rate for 15 of the next 30 years. Some Hybrid loans also come with an “interest only” feature.
In today’s market, Hybrid loans are a very popular choice!
Find out if a Hybrid Mortgage is right for you
Call or email a local American United Lending Professional today.
