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  Mark  Taylor, CMPS
AmeriFirst
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Mark@awesomerates.com
www.awesomerates.com
Ranked in the Top 200 Originators in the last 5 years



 

Fixed vs. Hybrid ARM Loan Analysis
If you won't be in your home longer than 3-10 years, there can be significant savings by using blended loans.

A Hybrid or Blended ARM has a FIXED rate for the first 3,5,7 or even 10 years before then becoming adjustable.
 
Enter the Terms of Your Current Loan
Original Loan Amount
   
Interest Rate
   
Loan Term
   
Payment    
Current Remaining Loan Balance
   
 
Expected number of years until sale or refinance
years  
 
Enter the Terms for New Fixed and Hybrid Loan Options
Loan Type FIXED   HYBRID ARM
New Loan Amount
 
Interest Rate
 
Loan Term
 
 
Payment
 
 
Monthly Savings vs. Current Loan
=  
 
Total Savings over years selected vs. Current
 
 
Extra Savings with Hybrid ARM
   
 
Principal paid
 
 
Extra Principal paid with Hybrid ARM
   
 
Total Savings and Principal Paid
 
 
Total Extra Benefit of ARM vs. FIXED
 
 

A traditional adjustable rate loan can be riskier than a fixed rate, yet, it can also provide a very tangible benefit for those that don't expect to have their home or their loan past the initial fixed period of today's most popular "hybrid" ARM loans. These loans have rates that are fixed and locked in for the first 3,5,7 or even 10 years and these periods very often exceed the average time between refinancing or sale.

A fixed rate loan is a great insurance policy against future uncertainty, yet, like all insurance it comes with a premium attached. If you think you may sell or refi within the first 3-7 years or more, a hybrid ARM may be just the thing you need to maximize your savings or help to get you started on other financial goals like saving for retirement or college educations.

Either way, it pays to consider all options if for no other reason than to be sure you've made the right choice and I'm always here to provide both the tools and the expertise needed to help you come to the right conclusion for your particular goals and needs.


©Copyright 2013 MyCalx.com
This information does not constitute an application nor a Good Faith Estimate. Every effort has been made to assure the accuracy of the information and mathematical calculations provided by these calculators however, the provider, makes no guarantee and maintains no liability for use of or reliance upon the results. These calculations represent "what if" scenarios, are educational in nature and where projections are illustrated, they are not intended to predict future performance of the markets and/or specific properties.
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