I am a Veteran. What is a good loan product that I might be able to qualify for that will give me a good interest rate and affordable payments?
The Department of Veterans affairs has a great loan program for anyone that is VA eligible. It is their 5/1 ARM loan. What this loan does is allow veterans active duty, retired, or anyone that is eligible for a VA loan to purchase or refinance a home and use a 5/1 ARM. How this loan works is that the interest rate is fixed for the first 5 years of the loan. After the first five years the loan will adjust each year after that. The adjustments are capped at 1% each year and 5% over the life of the loan. So if the loan is currently running around 3.75% then it would be fixed at 3.75% for the first five years and then if it adjusted at the max of 1% in the 6th year it would only go up to 4.75%. The max it could ever go is 8.75% after 10 years. Another positive effect of the loan is once it goes into the adjustment period the new payment is based on what you owe on the loan at that time. So even though your rate may go up your payment could even go down. There is never a pre-payment penalty on any VA loan and never a chance for negative amortization. You can also refinance at any time to a fixed rate. This loan is great for someone that may only have orders here for 4-6 years and is looking to keep their payments low. Rates on the 5/1 ARM are currently running below 4% and APR is based on actual rates, points, and credit scores. Please give me a call or shoot me an email if you have questions.
Assistant Vice President
11817 Canon Blvd. Suite 600
Newport News, VA 23601
757-873-7927 - office
757-810-3628 - Mobile
757-873-7929 - Fax
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