Hybrid mortgages?

[oasis]

Hello all,

 

I would like to know about hybrid mortgages.

 

I am planning to take up a mortgage for purchasing my dream home. But, I am confused with a fixed rate mortgage or variable rate mortgage. I am not sure which one would be the best for my financial condition. With a fixed rate, there is no need to watch the market closely because you know that your rate won’t change affecting your mortgage payments. But with a variable rate, you will experience the highs and lows of the market leading you to potentially save money.

 

So I thought it would be great if I could reap the benefits of both. And that is when I heard about hybrid mortgages. Also known as laddered mortgage or 50/50 mortgage, a hybrid mortgage allows you to lock in your loan at a higher fixed rate while the other part of your loan is at a lower variable rate. 

 

However, I would like to know the risk factors related to this. Has anyone taken up such mortgages?