Most borrowers look at two basic loan programs: a fixed-rate mortgage or an adjustable rate mortgage. The only difference between the two types of loans is how the interest is attached to the loan, either a steady interest rate or a sliding rate that adjusts with the national prime.
Hybrid loans often have more relaxed standards than traditional lending programs. There are a variety of loan programs that fall under the hybrid label.
Piggy-back Loans
Piggy-back loans allow borrowers to buy a home with either a very small down payment, or save money by forgoing private mortgage insurance (PMI). With this program, two loans are taken at the same time. A first mortgage which covers 80% of the home value and a second mortgage that covers the rest of the home value (usually between 5 and 15%). This type of loan program is great because it allows you to have a lower combined monthly payment than you would with a traditional loan program.
Convertible ARMs
An ARM is an adjustable rate mortgage. Many people hesitate to take an ARM because of concerns that increases to the national prime rate will drive their interest rate and monthly payment above what they can afford. With a convertible ARM, you can covert from an adjustable to a fixed rate when rates begin to climb. Sometimes you will have to pay a fee to convert the loan, but it is still less than the overall interest increase.
Two-step Mortgages
Another option for an ARM is to have a loan that adjusts only once, at a specific point in time. For instance, the rate will often change either at 5 or 7 years into the loan. There is usually a ceiling which limits how much the interest can increase based on the initial rate, although the rate can drop if the market rate decreases.
There are even more loan programs available, options that allow you to make additional periodic payments, sometimes called balloon payments or graduated payments. This type of loan allows you to have a regular monthly payment, and then make a periodic extra payment. These loans work for people that expect their incomes to increase, but they can sometimes be dangerous for owners whose income does not increase as expected.
Your best bet is to discuss all your options with a mortgage expert, someone who can point out potential problems with any mortgage program. Carefully weigh all the pros and cons before committing to any mortgage and you will find a loan that takes you further than you expected.
Best Gas Mileage Hybrid
Owners of hybrid cars are taking the plunge for those of us still driving the regular gas-only engine cars. Although they are getting some perks for having these electric/gas hybrids, they still want to improve their gas mileage. In fact, although some drivers have reported much better gas mileage than they had with their regular cars, they are finding that their expectations have not been met quite the way they imagined they would be. In these cases, some hybrid owners have actually made it something of a game to try and get better and better mileage.
It appears that the expectations are high with hybrids. Some models of hybrids are getting in the 60 mpg range for cities and highways. For some owners, however, the expectations are not being met because regular consumers are not driving like a trained tester. Experts on hybrid cars and driving in general are trying to consult with the owners to show them that the mileage guides were not deceiving them after all. After some workshops done with hybrid drivers, owners have reported much better mileage after taking advice from the experts. The added bonus from mileage tips for hybrids is that they also work for those of us who have not yet been able to make the switch over to these mileage makers.
For certain hybrid cars, the term ?pulse and glide? is becoming popular. This basically translates to finding the zone with the hybrid where energy use leveled off between the electric and gas engines. Lexus and Toyota get to claim use of the pulse and glide which is best found when driving somewhere between 30 to 40 miles per hour. Getting into this mode requires a little bit of fancy foot work which involves gradually getting to the speed (within the 30's to 40's range) which you want, and then once there, pressing quickly on the gas pedal. After this quick press, a Toyota or Lexus hybrid driver will get a clean screen on their dashboard which shows all black arrows. This indicates that energy use has stabilized. When this tactic is used properly, it is possible to double or triple your mileage. This process takes a little time to get used to but is probably a lot easier than driving a manual transmission or parallel parking.
Another top tip for saving on gas mileage will be a little harder to hear. The key is to take the rushing around out of driving. Slowing down and driving at the speed limit for a change is one of the best ways to save on gas. Although this tip might require some organization and lifestyle changes, it will also save you the most money. A dime saved on every gallon is the estimate by energy agencies when you stay slow and steady. A hybrid, or any car for that matter, does not like a lot of stop and go, either. Luckily, driving a little slower will give you more opportunities to see which lane will keep you from slowing down up ahead, so hopefully, you will not need to make a lot of sudden stops. Keep in mind the word ?glide? as much as possible. This will keep you from having to continually accelerate and break to get where you are going. When drivers get into that mode, they also tend to speed to get out of whatever cluster they are in and get into more accidents on top of that. Accelerating to get through a yellow light may save you 15 seconds, but it will not save you any mileage on your hybrid.
One of the other top tips for adding mileage to your hybrid is to pay a little more attention to your tire pressure. Under-inflated tires can reduce the mileage performance on a hybrid by at least 10%. This is large enough of a number to inspire a trip to the auto shop for a tire pressure gauge. The trick is to stay just under the maximum recommended tire pressure and make sure that you are checking the pressure once or week. Slow tires make a car drag, so let your hybrid become the super-mileage maker that they aim to be by making a note on the calendar to check them.
Both Jeffrey Nelson & Gregg Hall are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Jeffrey Nelson has sinced written about articles on various topics from Debts Loans, Marketing and Real Estate. to get a free copy of Jeff Nelson's, "7 Tips to Avoiding the Biggest Mortgage Mistakes," a 10-page report that describes the mistakes to avoi. Jeffrey Nelson's top article generates over 33100 views. to your Favourites.
Gregg Hall has sinced written about articles on various topics from Lingerie, Desserts and Mortgage. Gregg Hall is a business consultant and author for many online and offline businesses and lives in Navarre Florida with his 16 year old son. Get patented . Gregg Hall's top article generates over 3350000 views. to your Favourites.
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