Home buyers looking to save money on their mortgages may be switching from traditional fixed-rate mortgages to hybrid adjustable-rate mortgages, according to a new housing market analysis from The New York Times.

Hybrid ARMs differ from other ARMs in that they carry a fixed rate for a certain period of time before rate adjustments kick in. These loans are classified by the length of time before adjustments begin, with the most popular being a 5/1 loan, which carries a five-year fixed rate before annual adjustments begin, according to the Times. They are popular among people who may not be in their homes for very long.

Currently, hybrid ARMs comprise slightly more than 10 percent of the mortgage market, but a recent Freddie Mac survey indicates that number could climb to 14 percent by the end of 2012. Rates on 5/1 hybrid ARMs are 2.82 percent, less than the record-low 3.87 percent for a 30-year fixed mortgage, Freddie Mac announced February 16.

Veterans who take advantage of VA home loans can save money over non-veterans on mortgages. VA-backed mortgages do not require extra insurance payments or a down payment, according to VA officials

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