How Do You Maximise Fixed Rate Combination Split Loans?
After the economic crisis of the 2000s, lenders had to adapt to the new reality that homebuyers faced. Many could no longer qualify for conventional mortgages. Nor did they want to apply for variable-rate loan products. Variable-rate mortgages provide several benefits including the opportunity to spend less than on a fixed-rate option. However, the one big risk remains – interest rates can suddenly skyrocket again.
Therefore, lenders have come up with alternative products such as fixed-rate combination split loans. This loan offers interesting features that might entice some to trust variable-rate products.
The split loan is not a mortgage in and of itself. Instead, they place the product on top of an existing mortgage. The product allows homeowners to split a portion of their mortgage into fixed-rate and the rest into variable-rate. It’s one way to achieve the best of both worlds. If interest rates did skyrocket again, the homeowner has already protected themselves with the fixed-rate portion. However, if home loan rates fall, they save with the variable-rate portion.
Financially savvy homeowners can appreciate the benefits this product provides. We understand why others might shy away from it. Nonetheless, those who want to find out more can speak with our Mortgage House lending specialists. They can explore your options with you.
Fixed-Rate Combination Split Loans Conclusion
No shortage of innovation exists in the lending market in 2022. Among the innovative products that you’ll find are the fixed-rate combination split loans. Contact our Mortgage House lending specialists to learn more today.