commercial mortgage banking
the 2/28 ARM (most commercial mortgage banking products). The loan is a "Hybrid" because a true ARM 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 months afterwards. The 2/28 "Hybrid ARM" is a 6 month ARM that the borrower has purchased a "Rate Lock" or introductory rate for the first 2 years (this is also done in 3,5,7 year commercial mortgage banking periods), and then the loan becomes a 6 month ARM thereafter, rather than a loan that does commercial mortgage banking adjust every 2 years. The benefits This loan product has actually lowered the costs of borrowing in the early years of loans, but certainly is a source of continuing refinance business to the Mortgage industry. They let borrowers take advantage of special pricing, by saving money on payments when the borrower's a) salary is rising such as for young professionals or b) when the borrower knows they are going to move up quickly from one home to another. The risks If a borrower commercial mortgage banking inconsistent in their
commercial mortgage banking
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