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Real Estate Tips
Financing Your Home >Hybrids Offer Low Rates

In the field of home financing, "hybrid" mortgages have grown in popularity with homebuyers. With interest rates gradually rising in today's market, the hybrid mortgage product saves money, provides a period of fixed-rate security and helps buyers qualify for financing.

Hybrid mortgage loans offer a very low fixed-rate for a period of time, usually from 5 to 7 years, then revert to an adjustable rate mortgage (ARM) for the remainder of the term of the loan. The interest rate is typically lower than with a 30-year fixed-rate loan, and the borrower has the assurance that the rate will not change for a period of years. Such a loan works well for buyers who plan on reselling the home within a finite period.

Other specialty mortgages now available include an ARM loan with a provision allowing it to be converted to a fixed-rate loan when that is a practical step for the borrower. Still others offer an interest-only loan that requires payments to be made on the interest only for a specified number of years, then reverts to an amortized loan with interest and principal payments each month. Consult with an experienced mortgage professional to determine whether one of these loan products will meet your needs.

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Real Estate Trivia
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What three things are necessary in order to purchase a home?

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Some cash, a dependable income and good credit. If you fall short, don't despair--homeownership may still be possible.
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Jesse and Kimm Pastrana, REALTOR®, real estate agents and broker for Minneapolis, St. Paul, Twin Cities and Bloomington Minnesota home listings, property and land for sale - NUMBER1EXPERT(tm)

Jesse and Kimm Pastrana
Century 21 Pastrana Realty

3209 W 76th Street #203
Edina, MN 55435
Tel: 612-824-2272
Tel: 612-282-4477
Email: jesseandkimmpastrana@NUMBER1EXPERT.com

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