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Fixed & Adjustable Rate Mortgage Loan Product - With Line of Credit Option

06/05/2007

In this very unique mortgage product available through The Mortgage Store Online, a borrower can have the best of two worlds: both a fixed interest rate and an adjustable interest rate. It is ideal for people who need lower cost funds for renovations, investments, tuition or debt consolidation. This home mortgage is made of two components.

The first component is a base 5 year term or 10 year term fixed interest rate mortgage, today having a fixed interest rate of 5.74% or 6.30% respectively for the full 5 or 10 year term. Added to that is an adjustable interest rate component, which actually acts like a line of credit. The interest rate on this portion of the mortgage is at the bank prime interest rate, currently 6.00%, and it adjusts as the bank prime interest rate adjusts. This portion has payments of interest only and, of course, interest payments are made only on that portion used or drawn upon. This part of the mortgage is fully open. For example, if you had a $100,000 mortgage made up of $50,000 5 year fixed rate and $50,000 adjustable line of credit, your monthly payments would be $312.22 for the fixed interest portion and $250.00 for the adjustable portion (based on a 25 year mortgage repayment). As the fixed interest rate portion of the mortgage paid down, the line of credit is still available for the full amount for whatever purpose one desires - purchase of goods, emergencies, investment, etc.

What really makes this 'fixed and adjustable interest rate mortgage' so interesting and desirable is that as you make your regular payments on the base fixed interest rate portion of the mortgage, you are increasing the adjustable interest rate portion of the mortgage, or the line of credit. In other words, as you pay down the principal on the base mortgage, the amount you are paying down becomes available as additional line of credit, right up to the original mortgage amount without having to re-apply or re-qualify. You can get up to 90% of the value of your home in this mortgage and you can take up to a 40 year re-payment.

The only special qualification is that you must qualify for debt servicing at the 3 year posted rate. What portion needs to be fixed interest and what portion adjustable rate? That is wide open - there is no maximum or minimum of either. In fact, you can even add in one other mortgage component into this type of mortgage. This fixed and adjustable interest mortgage is great product that needs to be considered when needing a mortgage for a home purchase or for refinancing.

Request this specific fixed & adjustable rate mortgage product now!

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