top of page

Hybrid ARMs

Hybrid ARM mortgages combine features of both fixed-rate and adjustable rate mortgages and are also known as fixed-period ARMs.

​

(View Glossary of Mortgage Terms Here)

Hybrid ARMs (3/1 ARM, 5/1 ARM, 7/1 ARM, 10/1 ARM)

Hybrid ARM mortgages, also called fixed-period ARMs, combine features of both fixed-rate and adjustable-rate mortgages. A hybrid loan starts out with an interest rate that is fixed for a period of years (usually 3, 5, 7 or 10). Then, the loan converts to an ARM for a set number of years. An example would be a 30-year hybrid with a fixed rate for seven years and an adjustable rate for 23 years.

​

The beauty of a fixed-period ARM is that the initial interest rate for the fixed period of the loan is lower than the rate would be on a mortgage that's fixed for 30 years, sometimes significantly. Hence you can enjoy a lower rate while having period of stability for your payments. A typical one-year ARM on the other hand, goes to a new rate every year, starting 12 months after the loan is taken out. So while the starting rate on ARMs is considerably lower than on a standard mortgage, they carry the risk of future hikes.

​

Homeowners can get a hybrid and hope to refinance as the initial term expires. These types of loans are best for people who do not intend to live long in their homes. By getting a lower rate and lower monthly payments than with a 30- or 15-year loan, they can break even more quickly on refinancing costs, such as title insurance and the appraisal fee. Since the monthly payment will be lower, borrowers can make extra payments and pay off the loan early, saving thousands during the years they have the loan.

Need more details? Contact us
(203) 859-8124 or (860) 761-1331
  • Black Facebook Icon
About Us

We've been helping customers afford the home of their dreams for many years and we love what we do.

​

NMLS #2744 Verify our license at 
www.nmlsconsumeraccess.org

​​

Connecticut Mortgage Broker License

 -#11878 Connecticut Department of Banking

​

​Florida Mortgage Broker License -MBR2290, Florida Office of Financial Regulation â€‹

​

New York Mortgage Broker Registration -RMB 209144, New York Department of Financial Services​

​

Contact Us

88 Riverside Ave, Suite 2

Bristol CT 06010

​

20 Washington Ave, Suite 106
North Haven, CT 06473


Phone: (203) 859-8124 or (860) 761-1331


Brian@welcomehomemortgage.net

​​​

 

Locations in Bristol & North Haven, CT.

Disclaimers

Mortgage broker only, Not a lender or correspondent mortgage lender. This website is not for use by New York borrowers This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.

 

© 2025 Welcome Home Mortgage, LLC

 

Designed by North Star Design Studio

bottom of page