Hybrid mortgages commonly go by the name of “fixed/adjustable” or by its term (3/30, 5/30, 7/30, or 10/30). Here, you have a fixed rate for the first 3, 5, 7,or 10 years and then the mortgage converts to an ARM at the then current interest rate for the balance of its 30 year term. Typically, the shorter the inital fixed-rate term is, the lower the interest rate and monthly payment. After the fixed rate period, the loan reverts to a rather ugly ARM and the lender assumes that you will refinance. Some of these loans, however, don't have the ARM at the end. You owe the entire unpaid balance at the end of the 3, 5, 7, or 10 year period! If your financial situation is not good at this time, you may find yourself forced to sell quickly or face foreclosure. You need an automatic ARM attached (no qualifying, the loan simply rolls over).