| penalty would be deductible on Schedule A as home-mortgage interest. If the loan is for a rental property, then the interest would be deducted on Schedule E. What is the difference between a hybrid and a home improvement construction loan ARM THE dominant loan product in today's marketplace. They are often packaged as the 5/1 ARM or the 2/28 ARM (most popular products). The loan is a "Hybrid" because a true home improvement construction loan adjusts for the same periods for the life of the loan, ie. a 6 Month ARM is fixed for the first six months and adjusts every six |
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