SPLIT RATE LOANS
When you have trouble deciding on a variable or fixed interest rate loan, consider a split rate loan. A split mortgage allows you to reap the benefits of both the security of fixed rate loan and the flexibility of a variable interest rate loan.
The loan can be split in many ways; however, a 50/50 split is most common among borrowers. They also get to decide the period of the fixed interest part of the loan. This risk management strategy is often used by many borrowers.
DotCapital will discuss with you about the pros and cons of split rate loans. Our expert staff will help you every step of the way.