VA Hybrid arm loan 3/1 adjusts the interest rate yearly but payments are based on the remaining principle - true?

Payments are based on the original loan amount. You can add to paying down as much of the principle you wish to by adding to the regular payment. However, yourpayment is based on the rate and so the only change from a typical 30 yr fixed loan,is there likely will be a new rate once a year starting with the first year of adjustment.Obviously, the low rates offered on V A Hybrid ARMS can be enticing and certainly worthwhile when you are certain you will be moving and selling the home by a certain date. At the same time you do want to be comfortable with the adjustment terms in case you end up needing another year or two on the loan.