In high-priced housing markets, it can be difficult to afford a home. That’s why a
growing number of home buyers are forgoing traditional fixed-rate mortgages and standard adjustable-rate mortgages and instead opting for a specialty mortgage that lets them “stretch” their income so they can qualify for a larger loan. Specialty Mortgages: Risks and Rewards: For a borrower taking out a 30-year, 5/1 hybrid ARM instead of a 30-year fixed-rate mortgage, the savings was about 1.36 percentage points in January, Freddie shows. This would amount to a savings on the monthly principal and interest payment of about $194 on a $250,000 loan for the first five years. But before you choose one of these mortgages, make sure you understand the risks and how they work. To learn more visit our website.
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