Creative loan programs will gain popularity to assist in home affordability as mortgage rates continue to rise from all-time lows in 2013 according to Elliot Eisenberg, a leading Chief Economist.
Adjustable rate mortgages can be a smart option, especially Hybrid Loans, which are fixed for a certain period of time, i.e. 7 years, and then adjust thereafter based on the movement of a market index (ex. LIBOR).
On average, Hybrid Loans offer a 1% interest rate savings vs. a 30-year fixed rate mortgage. For a $350,000.00 mortgage, 1% difference in rate will yield $200 in savings, per month. That's $17,000.00 over seven years!
Thanks toJeff M. Nett,Cherry Creek Mortgage Co., Inc., NMLS ID #: 3001.NMLS ID #: 1094308 / LMB #: 100046373. Reach Jeff at(303) 331-4367 orjnett@ccmclending.com. Learn more at jeffnett.com.
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