What is a Hybrid Mortgage?
Potential homeowners are often looking for the best options to give them the lowest interest rate while being able to borrow the most money. Someone looking to purchase a home for a few years may want to consider using a hybrid mortgage, which is a combination of fixed rate and variable rate loans.
When using a fixed rate mortgage, the borrower knows how much their interest rate will be throughout the life of the loan, usually 30 years, but the rate is often higher than when using adjustable rates. An adjustable rate loan (ARM) often starts lower but can be riskier in the long-term if market rates increase.
A hybrid allows someone who is planning on being in a home for a short time to receive a loan at a lower interest rate. These can be ideal for someone who is beginning their climb up the career ladder and believes they will want a different home in a couple of years. A hybrid loan provides the opportunity for lower interest rates on larger loans at the outset of the mortgage. The benefits and consequences of such a mortgage should be considered before signing the paperwork.
Benefits
- The fixed rate period can be for three, five, seven or 10 years.
- In the first few years, the interest rate on a hybrid loan is lower than that for a fixed rate contract. For example, a hybrid loan in which the fixed rate lasts for five years and then adjusts annually, the initial interest rate is often a full percentage point below that for a 30-year fixed loan.
- They offer the buyer the chance to borrow a larger amount of money at a lower interest than they normally would.
- If market rates decrease after the fixed rate period is up, the borrower’s rate will also decrease, thus lowering their monthly payments.
Consequences
- The initial fixed rate of a hybrid loan is usually a little higher than that for typical one-year adjustable interest rate loans.
- After the fixed rate period ends, the rates will adjust, usually increasing. This will cause monthly payments to rise. Since the rates can be adjusted on an annual basis, it can be difficult to budget for the monthly payments.
- Those entering into a hybrid loan anticipating selling the home before the fixed rate period expires could find themselves taking a loss if home prices decrease.
A 30-year fixed rate home mortgage is a safer, less glamorous option for securing a home loan. The borrower knows how much to budget for monthly payments over a long period of time. This type of loan makes more sense for someone who plans on staying in the same house for a long time.
A hybrid loan may be a better option for someone who plans on selling the house or refinancing the loan prior to the end of the fixed rate period. Hybrid loans should only be considered by those who have done proper research and have developed a solid plan to avoid the higher interest rates.
Katherine Watkins enjoys writing about personal finance topics such as mortgages and home equity loans. She believes it is important for homeowners to do careful research and seek professional advice before borrowing money, so that they choose the best option for their circumstances.
Closets: Design and Inspiration
When looking for a new home, one of the top priorities for each bedroom is whether or not there is enough closet space. Having enough storage can make a big difference in how spacious, relaxing and calming your bedroom feels. Here are a few examples of how to make any closet feel fabulous!
photo courtesy of myhomeideas.com
Adding a large mirror to the far wall of your closet is one of the easiest ways to add depth to your closet space. The beautiful gold detailing on the mirror frame picks up on the glamorous feel of the sparkling chandelier.
photo courtesy of pinterest.com
These expansive drum pendant lights add a bit of drama to this bright and airy walk-in closet. The windowpane cabinets help create organized storage space that still looks very stylish.
photo courtesy of fabhousewife.com
Plenty of mirrors and natural light makes this walk-in closet a dream come true. A small bench and ottoman are a good idea, if you’re fortunate to have the space, for folding your clothes, laying out some outfits or just taking a second to pull on your boots.
photo courtesy of twoellie.blogsot.com
This combined closet and bathroom makes excellent use of space, providing plenty of storage, lighting and space. Built-in shelving allows you to customize your storage to fit in perfectly with the size of your closet.
photo courtesy of designindulgencies.com
Black painted cupboards and a modern chandelier makes this closet very chic and dramatic. Recessed lights help brighten any dark corners.
photo courtesy of apartmenttheraphy.com
The crisp white French doors on this closet are a wonderful option for closets that do not offer much space. The doors open up without taking up much room outside of the closet, and allow full access to the lower drawers inside.
photo courtesy of pinterest.com
A brilliant light like this pendant light can make all the difference in how luxurious a closet feels. The mirrored center table helps add a bit of glitz to this lovely closet, as well.
photo courtesy of tobifairley.com
This fabulous closet is big enough to live in. The soft lavender color is perfect against the white in the rest of the room and the gold mirror frame. The wallpapered ceiling is a lovely accent that would help brighten even a modestly sized closet.
Author Bio: I’m a writer for Arcadian Lighting, with a background in English literature, art history and a bit of French. Every day I get to discover beautiful, inspiring interior design ideas and light fixtures, and then get to share them with blogs and websites like Home for Her. When I’m not searching for the latest inspiring interior designs, I enjoy yoga, hiking, photography and traveling to new places.
Home Renovation: How to Reduce Dust in Construction
By Kathryn Haley
One of the biggest concerns people have before beginning a renovation is the amount of dirt and dust that will be created. The idea of having their home covered in a layer of dust keeps many from starting. If you have allergies or health issues need to be extra careful.
Although you can’t eliminate all dust and dirt during a renovation, there are things you can do to reduce the amount of dust that is created and control its spread throughout your home. So whether you are using a contractor or doing the work yourself, here are some tips for reducing dust.
1/ Seal Room
You can purchase rolls of thin plastic that you can seal off the work areas with. Hang the plastic in doorways and openings and tape it to the door frames. Make sure it is a tight seal, especially when sanding drywall.
2/ Cover Ducting
Be sure to seal off the floor vents and cold air returns in the rooms you are renovating. Once dirt and dust get into the vents it will spread throughout the house when you turn the system on. It will also require you to pay to have them cleaned out. Simply close them and seal them with plastic and tape.
3/ Use Dustless Drywall Compound
If you have ever had drywall work done you know the dust gets everywhere and lingers in the air for days. I discovered this product the last time I did a major renovation and it really works. Instead of going airborne and staying airborne, the dust falls to the floor and stays there. It is available at Home Depot and other home improvement stores and it is a must if you are doing drywall work.
4/ Wear layers
You probably won’t be able to get hired workers to wear them, but if you are doing the work yourself, buy some painters overalls and wear them. They are very inexpensive, you can find them at the dollar store, and they will protect your clothes and help you control the dirt.
Wear them when you are doing drywall sanding or any other dusty task, and then remove them before leaving the room. That way you keep the dirt and dust in the room and you don’t track it throughout the house.
5/ Cut Materials Outside.
Yes, it is more convenient to set up saws near the room being renovated, especially if it is upstairs. However, cutting tiles and wood in the garage or backyard is an easy way to minimize saw dust and tile dust.
6/ Make Cleanup Easy 
Another great product that makes clean up and containing dust and dirt easier is Rosin paper. Cover your floors with the paper and tape it in place before you start renovating. Once you are finished you can simply roll up the paper with the dirt and dust inside and throw it out. An added bonus is it protects your tile or hardwood flooring from damage as well.
Let’s face it, renovations are messy. There is no way to do a renovation and not have some dirt and dust. However, if you follow these tips it will much easier to control the dirt and reduce the dust.
Do you have any other tips to help keep renovation dust under control? Let us know in the comments below.
Buying Antiques For Less: How To Buy Antiques and Save Money
Some people have a passion for antique furniture. Designs and trends that have gone out of fashion are represented in the old pieces. Antique furniture has more value than new one. With the economic situation not quite rosy, investing in antique furniture seems like a bad idea. Yet, some people prefer antique rather than any other furniture. It is quite possible to stick to your budget while indulging in your passion. Here are some ways in which you can save money on antique furniture.
Ask Your Acquaintances
If you know someone among your family and friends who has purchased antique furniture, ask them where they bought it from. In most cases, people who buy antique furniture have knowledge of the best places to buy from. You can ask them about where you can find antique furniture for a reasonable price. They will guide you in the right direction. Asking people you trust is better than relying on the expertise of a total stranger.
Explore and Browse Around
There are a number of shops that sell antique furniture. You can also visit the flea markets and bargain stores that have old furniture pieces. The more you explore, the wider the range of prices will be for you. You will have a fair idea of how much cash you would have to pay to acquire the furniture you are looking for. You have to be patient because it might take some time before you find furniture for the best price. Keep your patience and efforts up and you will finally find the best place to shop for antique furniture.
Go Online
There are several online stores that sell antique furniture. It is a good idea to go online and research about the antique furniture available for sale there. More often than not, online stores offer a better price than the brick and mortar ones. Also visit stores such as eBay where people are selling their second hand things. You might be able to find just what you are looking for at the right price.
Auctions
Attend auctions where furniture is being sold off. Chances are that you may find a good piece of antique furniture which attracts no other buyers. If you are able to come up with a good bid for it, you can take it home. Avoid the high profile auctions because investing hundreds of thousands of dollars in antique furniture is hardly a good idea. If you are looking to save money on antique furniture, attend foreclosure auctions and other small scale events.
Package Deals
Sometimes buying one piece of antique furniture might be expensive but not if you buy the whole set. Some dealers are looking to clear out their inventory and are likely to offer a better price if you are buying more than one piece. Keep your options and your wallet open and you might be able to find good deals where you can save money on antique furniture.
These are the ways in which you can save money on antique furniture.
Chris specialises in french furniture. He loves to browse around to find a great piece. At the moment, he is looking for a unique french provincial bed
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