The VAhybridloan, which is also sometimes known as the VAhybridARM, is a home loan option that combines the stability of a fixed-rate mortgage and the savings opportunities of an adjustable-rate mortgage into one loan.
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What are the benefits of a VA hybrid ARM loan?
VA hybrid ARM loans also carry guaranteed rate caps, which ensure that interest rates increase by no more than 1% per year. In addition to this annual rate cap, the VA hybrid loan also offers a lifetime rate cap of 5%, so you’ll be protected from any skyrocketing rates for the entire life of the loan.
What is a VA hybrid loan?
The VA hybrid loan, which is also sometimes known as the VA hybrid ARM, is a home loan option that combines the stability of a fixed-rate mortgage and the savings opportunities of an adjustable-rate mortgage into one loan.
What is a VA ARM loan?
VA ARM loans further the goal of opening homeownership to as many veterans as possible. The VA ARM provides the ability to bypass a down payment and still get very low interest rates. VA ARM loans were born of the desire to help our nation鈥檚 veterans get the homes they need at prices they can afford.
What is a hybrid ARM and how does it work?
What Is a Hybrid ARM? A hybrid adjustable-rate mortgage, or hybrid ARM (also known as a fixed-period ARM), blends characteristics of a fixed-rate mortgage with an adjustable-rate mortgage. This type of mortgage will have an initial fixed interest rate period followed by an adjustable rate period.