Combination Mortgages

How Do You know If A Combination Rate Mortgage Is Right For You?

Combination rate mortgages are just that, the combination of fixed interest rates and adjustable interest rates. Also known as hybrid loans by lending institutions. In the beginning the interest rates are fixed, about 2% to 3%. This interest rate and your monthly payment remain static, unchanging. However, your interest rate becomes adjustable and can vary through out the course of the remaining term of the loan.

If Your Financial Needs Are As Follows, Than A Combination Rate Is What You Are Best Suited For:

• Your Monthly Budget Constraints Will Not Change Or Allow For Any Increases Over The Next Few years. You need to be secure in knowing that you have complete control over your finances.

• You're In Need Of Re-establishing A Good, Solid Line Of Credit. By consistently repaying this loan, in a timely manner, you should then be able to refinance this loan at a more advantageous rate in the future.

Combination rate loans typically have lower interest rates than fixed rate loans, that can be a distinct advantage to you and your family during the first few years. Further, you may be approved at the time of application for more needed funding because typically the monthly installment burden is less than with other types of loans.

If you happen to be a bit over-extended with all the standard debts; credit cards, automobile expenses, insurance premiums, doctor's and pharmacy bills or another loan, a combination loan may be just the thing for you. This is because the allowable level of your current debt can be higher.

So, as you can see, you would be able to use your newly acquired combination rate loan for debt consolidation and refinancing purposes. Then after you've paid off your household bills, and all the other consumer debts, your remaining responsibility is in the form of a home loan. You have successfully reduced your long, burdensome list of debts to one controllable monthly payment. And, the real immediate advantage is this: the payment is actually lower than the combined debt that you had just last month because the new payment is lower.

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