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Could a Hybrid Mortgage benefit you?

Hi, I’m Debby Adler with the Adler home team. Today we wanted to speak to you about Hybrid Mortgages.

Are you thinking about buying a new home this year? Some mortgage economists are predicting that conventional 30-year fixed-rate loans may go to 5.5 percent before year-end.

So should you shop primarily for a traditional mortgage product that guarantees you a specific rate for 15 to 30 years? Or should you check out hybrids? These are loans that provide you a guaranteed fixed rate for a predefined period — say, five, seven or 10 years — then convert to a rate that can change annually.

The right choice for you depends on how long you are planning to stay in your new home.
The case for sticking to a 30 year fixed mortgage is that rates are still historically low. However, for first time buyers who may be looking to purchase a smaller starter home and move up to a bigger home 5 or 10 years down the road, the hybrid may be for you.

The bottom line is you should check out all the options available to you. If you are comfortable with the potential risks, and the monthly savings advantages of a hybrid are substantial, go for it.

Thanks for your time. Please reach out to us for any questions at any time. Enjoy your day.