|
|||||||||||||||||||||||||||||||||||||||||
Hybrid-Combo Mortgage Loans:Advantages and Disadvantages |
|||||||||||||||||||||||||||||||||||||||||
Hybrid-Combo Mortgage Loans:Types of Hybrid-Combo Mortgage Loans |
|||||||||||||||||||||||||||||||||||||||||
The basic types of hybrids
include the following:
There are also hybrids at:
Some hybrids come with longer adjustment periods.
The challenge you have with this extended adjustment intervals is the timing of the interest rate market.
|
|||||||||||||||||||||||||||||||||||||||||
Hybrid-Combo Mortgage Loans:ARM Components of Hybrids |
|||||||||||||||||||||||||||||||||||||||||
The
ARM components include the following:
|
|||||||||||||||||||||||||||||||||||||||||
Hybrid-Combo Mortgage Loans:Notes on the Index Rate |
|||||||||||||||||||||||||||||||||||||||||
Two widely used ARM indexes are the Treasury Rate Index and Cost of Funds Index. Lenders on the East Coast and Mid-West typically use the Treasury Rate Index:
Lenders in the West are more likely to use the Cost of Funds Index:
Another widely used index is the LIBOR
You will find that about 80% of all ARMs on the market today use one of the three above indexes.
|
|||||||||||||||||||||||||||||||||||||||||
Hybrid-Combo Mortgage Loans:Other Notes |
|||||||||||||||||||||||||||||||||||||||||
Teaser Rates:
Payment Recalculations:
You should double check the banks calculation
|
|||||||||||||||||||||||||||||||||||||||||
Hybrid-Combo Mortgage Loans:Accelerated Repayment Plans |
|||||||||||||||||||||||||||||||||||||||||
1: Bi-Weekly Mortgage Loan Payments
2: Pre-Pay 1/12th Each Month
3: Accelerated Mortgage Payoff Plans
download our amortization schedule to run your own numbers |
|||||||||||||||||||||||||||||||||||||||||
|