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hybrid ARM

Mortgage type that is a cross between two popular home loan types; it has features of both the fixed rate mortgage and the adjustable rate mortgage. In this situation, the mortgage interest remains unchanged for a certain number of years, and thereafter it starts to rise in step with the market interest rate up to a limit (rate cap) set in the mortgage agreement. Often the interest rate in a hybrid ARM is substantially lower than in the other types because the interest rate risk is shared between the lender and the borrower. It is considered more suitable for those who plan to sell their house between five to seven years.

Related information about hybrid ARM:
  1. Hybrid ARM Definition | Investopedia
    An adjustable-rate mortgage blends the characteristics of a fixed-rate mortgage and an adjustable-rate mortgage. This type of mortgage will have an initial fixed ...
     
  2. Adjustable-rate mortgage - Wikipedia, the free encyclopedia
    A hybrid ARM features an interest rate that is fixed for an initial period of time, then ... The date that a hybrid ARM shifts from a fixed-rate payment schedule to an ...
     
  3. Hybrid ARM Mortgage Statistics, from HSH Associates
    Weekly hybrid ARM statistics. HSH Associates is the world's leading publisher of mortgage and consumer loan information. We survey current loan rates from ...
     
  4. VA ARM - Adjustable Rate Mortgage for Veterans
    The VA Hybrid ARM provides for an initial fixed interest rate, and then adjusts ... The 3/1 and 5/1 VA Hybrid ARM products allow a 1% annual interest rate ...
     
  5. More people should consider hybrid ARMs
    Sep 8, 2003 ... With homeowners frequently moving within seven to 10 years, many borrowers are better suited for a hybrid ARM than a traditional fixed rate ...
     
  6. How Do I Calculate a VA Hybrid ARM Adjustable Mortgage? | Home ...
    VA home loans are low-cost, low down payment mortgage financing options. The loans are available to active-duty military and veterans. Included in the types of ...
     
  7. What is hybrid ARM? definition and meaning
    Definition of hybrid ARM: Mortgage type that is a cross between two popular home loan types; it has features of both the fixed rate mortgage and the adjustable ...
     
  8. Va Hybrid Arm
    Sep 21, 2012 ... There are many misconceptions and lack of knowledge surrounding the VA Hybrid Loan among veteran homeowners.