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Florida Mortgage | Fixed Rate Loans with Interest Only Option

Adjustable Rate Mortgages (ARM) are not very unpopular right now thanks to the media bashing them. To make things worse, they currently (August 31, 2007) have higher rates than Fixed Rate Mortgages. This poses a problem for people that want a lower payment but now are demanding the secure rate of a Fixed Rate Mortgage.

The answer to this problem is found in Hyrbid Mortgages. These loans combine the security of a long-term rate with a lower payment in the early stages of the loan.

My favorite Hybrid Mortgage program is a 30 year Fixed Rate with 10 years or 15 years of Interest Only.... hence the Hybrid moniker.

The Features of the 30 year Fixed with Interest Only are:

  • Lower payments than traditional 30yr Fixed
  • Longer Interest Only period than most people remain in the same property
  • Pairs great with any Mortgage Pay-off Program

Whatever your strategy is with your Mortgage Plan, this is Hybrid 30yr Fixed Rate Mortgage is a great loan to consider!

For more features and benefits, read more at: Florida Mortgage | Fixed Rate Loans with Interest Only Option

To purchase or refinance with this Mortgage today, contact your favorite Mortgage Broker Today!

More Florida Mortgage and Real Estate News you can use from
David A. Podgursky, MBA
The Mortgage Go To Guy!!
Your Source for Residential, Commercial, Investment, and Relocation Mortgages in Florida
Posted Tuesday Sep 04
( 09/04/07 09:48AM ) — Hope Goss Ventura Real Estate

I agree, the bashing of all loans except the 30 year fixed has lead many potential homebuyers right out of the market.  A 30 year fixed is not for everyone - especially those buying their first home.  Most first time buyers only stay in their home 5-7 years and a 30 year fixed is not the right product for them.

( 09/04/07 09:48AM ) — Hope Goss Ventura Real Estate

I agree, the bashing of all loans except the 30 year fixed has lead many potential homebuyers right out of the market.  A 30 year fixed is not for everyone - especially those buying their first home.  Most first time buyers only stay in their home 5-7 years and a 30 year fixed is not the right product for them.

( 09/04/07 10:09AM ) — Susan Trombley Broker/Realtor Raleigh, Cary, Wake Forest, Youngsville

my my my the new loans that are coming out. I have not heard of hybird. Thanks for the blog for my learning curve.

( 09/04/07 10:28AM ) — Matthew J Blum - MyFavoriteMortgage.net

David, This program is a fantastic program. I have many clients who are very happy with this.  If gives them both security knowing that the rate is locked and also a way to pay down the mortgage quickly.

( 09/04/07 10:57AM ) — William Moore

Any prepayment penalty?

( 09/04/07 11:45AM ) — Bill Roberts - "Baby Boomer" Retirement Planning

David, can we "invent" a couple new hybrids? How about a pay-option for five years and then fully amortized fixed rate for another 30 years? This would provide something for everybody, whether they stayed in the home for just a few years or forever.

Bill Roberts

( 09/04/07 12:54PM ) — Thomas Weiss

David,

This is a great program, most of my clients like the option of adding principle, if they wish at anytime.

Tom Weiss

( 09/04/07 01:08PM ) — David A. Podgursky, MBA The Mortgage Go To Guy!

Hope... good points!

Susan ... it isn't that new :)

Matt .. me too...

William ... there are typically no Prepayment Penalties on conforming loans - i.e. $417,000 and under. Over that, it can be bought out if and when it exists

Bill - they have something like that... almost like it but not 100%

 

( 09/04/07 01:10PM ) — David A. Podgursky, MBA The Mortgage Go To Guy!

Tom ... yes.. they can make a larger payment at any time and thereby reduce the principle.

My inclinations are to save that money in an outside account and make one big reduction annually rather than many small ones.  You can save that money in an interest bearing account or even a CD and thereby reduce the principle that much more

( 09/04/07 02:18PM ) — Thomas Weiss

David,

It shows how you do business, by looking into the long term for your clients. I do understand what you mean, by making one large principle payment at the end of the year, thats a great idea!! you really are a great Broker and someone to learn from.

Tom Weiss

( 09/04/07 07:22PM ) — George Souto

David, our ARM programs are still lower than the 30 Year Fixed, but the gap between them has closed a lot.  The 10 & 15 Year Interest Only are probably going to start to receive a lot more attention, but that will probably depend on how much Loan Officers present them to their Borrowers.  Presenting these options in blogs such as this is a good place to start.

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