VA Hybrid arm loan 3/1

Pricing for a 3/1 Arm is going to be higher than a 5/1 Arm.. and depending on your situation and how long you intend to live in the property, it could be a very, very good deal for you.. Otherwise.. if you intend to live in the property for greater than the 3 to 5 years, it's very likely rates will be higher in the future then today.. so I would not recommend an Arm... the short of the story.. if you use an ARM for what it's intended for, it can save you thousands.. if not, then you can get hosed... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

With fixed rates in the low to mid 3's, I don't understand why anyone would opt for an ARM today. The exception might be if you are 100% certain you won't be in the home in 3 or 5 years and the lender is paying all of the closing costs out of the rate premium. If you take the ARM, and rates begin to rise, and they will, and you don't move, you could easily chew up any savings you did make in a very short period of time. Sadly, I've seen too many people get hosed by rising rates. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

In general, I do not reccomend ARM loans. I especially think it is a bad idea with fixed rates being this low. The only situation where I believe an ARM is beneficial is if you plan on selling your home within the fixed rate period of your ARM.

THE BEST VA loan is the 30 fixed ,, no money down, no mortgage insurance , and it is a lot eaiser to get thru the underwriting process of the VA DEPT... linda

Ripoff is a strong word especially if you are educated enough to make the decision and choose a VA ARM. If you fully understand the loan product and it fits into your financial game plan, a VA ARM can be a powerful tool.

From what I've reviewed here it seems a key question is not addressed. Yes, fixed is a good rate now, but I thought the interest each year is based off the original loan amount. Isthis correct? With the VA hybrid arm the interest is off the amount owed each year thereafter. Does this change the view of a traditional ARM loan?