Welcome to Mortgage Guide
Low Mortgage Rates Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Subprime Hybrid Mortgages
from: Carrie ReederSubprime hybrid mortgages offer temporarily low rates for
borrowers while they work to rebuild their credit. With a
sub-prime hybrid mortgage, you don't have to pay PMI, saving
hundreds a year. After two or three years of on time payments,
you can then refinance for conventional mortgage rates.
Hybrid Mortgage Basics
Since so many people refinance their home loans after they have
reestablished their credit, lenders created a mortgage to offer
maximum flexibility for borrowers. Hybrid mortgages are
typically 1.5% lower than a conventional loan for the first two
or three years, depending on your mortgage terms. After that,
the rated becomes adjustable, rising and falling based on
indexes.
Lenders usually require a prepayment fee if the mortgage is paid
off before two or three years. Since most borrowers use this
period to establish good credit, the fee isn't a problem for
most. You may also be able to waive the fee by paying a point
upon the loan's settlement.
A hybrid mortgage also allows you to borrow more than with a
fixed rate mortgage since your monthly payments are lower. You
may also decide to increase your down payment to lower your rate
or increase the amount you qualify to borrow.
Hybrid Mortgage Lenders
Hybrid mortgages are offered by conventional and sub-prime
lenders. Rates, fees, and terms will vary with each lender. In
order to find the best financing package, you should request
quotes from several lenders before making a decision.
Typically online financing companies waive or reduce fees, so
they are well worth checking out. You can also request quotes
from traditional companies through their websites. Online
mortgage brokers also make comparison shopping easy by offering
several side by side quotes.
Refinancing Options
After you have had your hybrid for at least two years, you
should begin shopping to refinance your mortgage. If you are
planning to move within seven years, an adjustable rate mortgage
may offer you the lowest rate. If you plan to stay put, a fixed
rate mortgage can guarantee you a low rate over the course of
your loan.
As with a sub-prime loan, compare lenders and finance packages
to find the best deal.
About the author:
See my recommended
Subprime Mortgage Lenders online. Carrie Reeder is the owner
of ABC Loan Guide, which offers help with
credit.
Low Mortgage Rates News
Mortgage rates hit low of 4.54 percent
Mortgage rates are the most affordable in decades for those who can qualify for a loan.
Read more...Mortgage Rates at Record Low of 4.54%
Mortgage rates have hit record low interest rates for 30-year and 15-year mortgages. This is the most affordable in decades for those who qualify, reports the Associated Press. The rates have stayed low for the 6th consecutive week. Interest rates for 30-year, fixed-rate contracts dropped to 4.54% from 4.56, with an average 0.7 points. It is a record low for the 39-year interest survey, reported ...
Read more...Mortgage rates hit low of 4.54 pct.
Mortgage rates dropped to the lowest level on record for the fifth time in six weeks, making homebuying and refinancing the most attractive in decades for those who can get loans.
Read more...Mortgage rates at new record low
Mortgage rates hit a modern-day record low, yet again. The benchmark 30-year fixed-rate mortgage fell 3 basis points this week, to 4.71 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point.
Read more...Mortgage rates hit low of 4.54%
NEW YORK » Mortgage rates are the most affordable in decades for those who can qualify for a loan. For many the opportunity to buy a home or refinance at this time is lost because of the tough economy and tight credit standards. But those who have secure jobs, superior credit and strong finances could do even better than the 4.54 percent average rate that Freddie Mac reported yesterday ...
Read more...Mortgage Rates Hit Low of 4.54 Percent
Average rate for 30-year mortgage hit record low, but better rates exist for stellar borrowers Mortgage - Business - United States - Financial Services - Loan
Read more...Mortgage rates hit low of 4.54 percent
Mortgage rates are the most affordable in decades for those who can qualify for a loan. For many, the opportunity to buy a home or refinance at this time is lost because of the tough economy and tight credit standards. But those who have secure jobs, superior... Mortgage - Loan - Refinancing - United States - Business
Read more...