We got a VA loan in June (with no down payment). Now our mortgage broker is telling us we should refinace that loan already into a 5/1 to get even lower rate?

A 5/1 ARM is not the best of choices if you intend to stay in the home for the rest of your life. The 30 yr Fixed is the loan to stay in.

Even though rates are better now than they were in June, that just doesn't sound like a good idea to me...it would have made more sense starting with a 5/1 then turning it to a fixed rate with lower rates. If you're comfortable with your payment and it's a fixed rate, you should just stay on course. Anyone who's on a fixed income and retired should avoid adjustable rate mortgages, with the exception of a reverse mortgage.

Hi Janie,If you are in a 30yr loan, you may want to stay in that. If you took an ARM and now the 30 yr loan may be close to your current rate, maybe you could consider that. There are other details that would need to be considered to be certain that it would make sense though.Best,MattPier West Capital

Janie,You have a greedy and unethical broker. Fixed rates are so low now to even think about an ARM. Who knows what the rates will be in 5 years when it adjusts? I advise my borrowers against ARMs in today's market. Even my jumbo borrowers who have been conditioned to 5/1 ARMs. ..... Happy funding, Rudi