What does a hybrid mortgage allow a borrower to do?

A hybrid mortgage combines different types of mortgage loans, allowing the borrower to take advantage of both fixed and variable interest rates within a single loan structure. This flexibility is beneficial because it can provide stability through fixed rates for part of the mortgage while potentially allowing for lower rates through variable components, which can result in lower overall interest costs if interest rates remain stable.

The other choices reflect different mortgage features that are not integral to the concept of a hybrid mortgage. For instance, only choosing fixed rates pertains to a standard fixed-rate mortgage, limiting payments to interest only applies to interest-only loans, and refinancing with zero interest is not a standard option in any mortgage product. Thus, the correct understanding of a hybrid mortgage is that it presents the unique benefit of blending various mortgage types into one structure for adaptable borrowing options.