If you are a homeowner that would like to take advantage of lower mortgages interest rates but do not want to commit to a 30 year mortgage, a hybrid mortgage could be right for you.

Many homeowners shunned the notion of refinancing their current mortgages because they might be moving within the next few years. There is a way to refinance your mortgage to take advantage of lower interest rates even if you are moving in five years. Hybrid Adjustable Rate Mortgages offer fixed interest rates for an initial period. After that initial period the interest rate will be adjusted at a certain interval.

Suppose you were considering refinancing with a 5/1 Hybrid mortgage. Your mortgage lender would give you a fixed interest rate for the first five years of the mortgage. After five years, the interest rate will be adjusted every year. There are several varieties of Hybrid mortgages; popular choices include 5/1, 7/1, and 10/1 Hybrid mortgages.

As you can see, a mortgage that offers a fixed interest rate for five to ten years could be extremely beneficial to homeowners that might be moving within the next few years. There is a catch however; you need to choose a lender that offers hybrid mortgages with no penalties for early repayment. Because you will be refinancing at the end of your Hybrid mortgages fixed period you do not want to pay a penalty that could negate your potential savings.

Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker. He is the owner of Mortgage Refinance Advisor, a mortgage resource site devoted to saving homeowners money with a free guidebook Five Things You Need to Know Before Refinancing a Mortgage. http://www.refiadvisor.com