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If you were to get a fixed 30-year mortgage at same that you’re considering hybrid, it is unlikely that you would get a fixed rate that matches teaser rate on ARMs in market. To take full advantage of this type of mortgage, you must fully understand that rate will revert to ARM levels at some point.
This means that you can count on a rapid and drastic increase in your monthly payment once loan goes back to a full adjustable rate basis. If you plan to stay in home for a very long time, your savings from locked in period will probably be wiped out when loan reverts to its adjustable status. You can consider a refinance, but that will also take some money out of your pocket. If you decide that you don’t want to sell property, keep in mind that overall, your loan will still be an excellent choice for your financial situation.
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