Hybrid Loans

1 Reply

Hey everyone I'm still fairly new to real estate and have recently been introduced to Refinancing with a Hybrid loan. This is the first time I have heard about a hybrid loan and I am just wondering if it is worth it. I have a home that I have been renting out I bought it about a year ago and the monthly payment is around 960 and I got a letter in the mail about a hybrid loan saying they could reduce my payment to around 700 and the interest rate would be at 1.75 at a fixed rate of 6 years so I understand after the 6 years it will change so I'm just wondering if it is worth it to take that chance Refinance with the hybrid loan then when the fixed rate is about to end refinance again or stick with the hybrid loan or just stick with my current loan.

Thanks for any advice.

Interest rates right now are very low. My personal philosophy is to lock those in for as long as I can. If you believe that in 6 years rates will be as good or better then it might be a good deal. My opinion is that if you are not well educated on the risks, rewards, and strategies, stay away from anything adjustable.

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