VA ARM Loan Reviews
You’ve heard and seen numerous commercials about this mortgage company or that perfect home loan. But what are real borrowers saying about the VA hybrid loan? I can talk all day about the benefits and risks, but knowing what borrowers are saying about their personal experiences with it can offer a new perspective into how these loans actually operate. Below is one of our VA ARM loan reviews. Watch this video and see how much this customer is saving on his monthly mortgage payment.
In this article, we will help clarify a few things. A lot of rumors circulate about hybrid loans, scaring away potential borrowers, and most of these rumors are completely untrue. Every situation is different but understanding and educating your self is the first step to saving money. VA hybrid loans may not be for everyone but they are certainly an option to think about.
Debunking VA ARM Loan Rumors
- Interest rates can and will rise at any time. Not so! Rates can only change once a year on the anniversary of your loan, and that’s only after the fixed-rate period has ended. Beyond this, rates cannot increase more than one percent each time and no more than five percent over the life of the loan. Pretty predictable, right?
- It’s very difficult to pay mortgage during the adjustable-rate period. Actually, the hybrid loan is a re-amortizing loan, meaning your payments will adjust depending on what you’ve already paid. I could go into detail about what re-amortizing is, but simply put, just because your interest rates could go up, that does not necessarily mean your payments will go up as well. During the first period (the fixed-rate portion) you are paying principal much faster than usual because the rates start off so low. With so much payment out of the way, you will actually be paying less simply because you have less to pay when your loan re-amortizes.
Quite a few reviewers of the hybrid say that it has worked out well for them. Even if rates go up, they feel reasonably sure the terms of the loan will allow them to pay the difference.
- These loans are only for people who are going to move soon. The VA hybrid loan could be a great option for someone who will likely only stay in their house for a few years, but If you plan on staying in your house for a while, a hybrid loan could still be the best option for you. And you may be able to refinance after a few years if you are unsatisfied with the loan terms.
It can be beneficial to see what difficulties borrowers have had with the VA hybrid loan, but no amount of internet chat will replace a good discussion with a loan officer about your individual situation. Here at Low VA Rates we specialize in VA Hybrid loans and we are more than happy to go over the pros and cons of the loan with you. For more information call us now at 866-569-8272.