when the borrower knows they are going to move up quickly from one home to another. The risks If a borrower is inconsistent in their on time payment history, afflicted by tragedy which causes a credit problem, or keeps 2nd home loan mortgage funds in reserve (the payment savings from the lower rate for example), as referenced above, 2nd home loan mortgage rates in Hybrid ARMs will certainly rise, and with insufficient credit and income, the borrower may be forced to trade equity for time, and in some markets, not as advantageously as today. Terminology Fully Indexed
