Question
mortgage rate: combined 1 year fixed and 5 year fixed?
Hi everyone ! I am looking to buy a condo, and a mortgage broker gave me a few rates from variable to fixed. The last one he gave me was: Combined rate 1 year fixed and 5 years fixed at 3.37 %. what does it mean????? I heard 1 year fixed, and 5 years fixed, but never them combined?? Thanks ! I am not thinking of negociating a rate for over than 5 years. I am not sure what you meant with 15 years or 30 years mortgage. It actually means one part of your mortgage, say 40% goes into 1 year fixed rate, and 60% of your mortage goes in a 5 years fixed.
5 months ago - 3 answers
Best Answer
Chosen by Asker
It actually sounds like an adjustable rate mortgage. Your first year is one rate, the next five are another rate and after that it could go up or down with the fluctuation of interest rates. I highly recommend going back and asking your broker for a fixed rate 15 or 30 year mortgage.
by rashiracer
5 months ago
Asker's Rating: 
Other Answers
Might be 2 mortgages involved - but in any case, either turns into a balloon, or more likely an ARM. Adjustable mortgages almost always have a fixed rate for an initial period. You want a fixed rate mortgage - for the whole period of the mortgage, the rate stays the same. Rates for that will be more than 3.37% though. The low rate is a "teaser" rate to suck you into an adjustable mortgage - don't do it.
by Judy- 5 months ago
Sounds like and 80/20 with both ARMs. Run do not walk run away from this or within a year or so you will be on here asking how to save my home
by Pengy- 5 months ago