Most people have a lot of misconceptions about the VA hybrid adjustable loan...preventing many veterans from saving hundreds to thousands of dollar instead of wasting money paying interest they don’t need to be paying.
(PRWEB) May 08, 2013
LowVARates.com, a division of Flagship Financial LLC, recently announced the addition of the seven year VA hybrid adjustable loan. This is the first time that Flagship Financial LLC has offered the seven year hybrid adjustable loan for military home owners.
The new hybrid arm loan allows veteran homeowners to lock in a lower interest ratewhile stillkeeping the rate fixed for at least 7 years. Flagship Financial LLC also offers the five year hybrid adjustable loan and adding the seven year loan has broadened the options and choices for military homeowners.
Branch manager of LowVARates.com, a division of Flagship Financial LLC, Eric Kandell, feels the new hybrid adjustable option will allow many veterans the lowest interest rates on the market without the risk of traditional arm loans.
“The VA hybrid adjustable loans may be the most misunderstood and underutilized VA home loan on the market,” Kandell said. “The new seven year hybrid loan will be a fantastic option for homeowners looking for the lowest interest rates while still have many years with a fixed rate.”
The new seven year VA hybrid arm loanremains fixed for the first seven years of the loan. After the first seven years, the interest rate can ONLY go up 1% point. Depending on the market, the VA hybrid loan can also adjust DOWN a full point after the beginning seven years or stay the same.
Many veteran homeowners confuse the VA hybrid adjustable loan with the very risky and volatile conventional arm loans that many home owners used during the housing crash. Those traditional arm loans do NOT have the restrictions and safeguards that the VA hybrid adjustable loan offers making them extremely volatile and risky. With the traditional arm loans, home owners could potentially bounce from a very low interest rate to a very high interest rate in a short amount of time.
“We want our military home owners to remember that the VA hybrid adjustable loan is not even close to the same thing as some of the poisonous arm loans we all know about,” Kandell said. “The VA has gone to great lengths to add safeguards to make the VA hybrid adjustable loan a very safe and excellent home loan option for veterans.”
According to data retrieved by Fannie Mae and Freddie Mac, the average U.S. home owner is in their loan for about 3.7 – 4.2 years. According to the statistics, the average military home owners will move before the seven year fixed period of the VA hybrid adjustable loan is over.
Once again, the VA hybrid arm loan does not operate like the traditional arm loans that scare home owners away. The Department of Veterans Affairs approves and guarantees the VA hybrid adjustable loan for military families. Because the VA backs and guarantees the loan, the interest rate can’t bounce up quickly keeping the interest rate at bay even if the market turns. It’s also interesting that since the creation of the VA hybrid adjustable loan it has NEVER moved up a full percentage point in a year.
The other safety measure the VA has put in place to ensure veterans are not put in a bad situation is the VA hybrid arm loan can never increase by more than 5% from the starting rate. This ensures a cap on the loan if the market changes drastically.
“Most people have a lot of misconceptions about the VA hybrid adjustable loan, “ Kandell said. “These misconceptions are preventing many veterans from saving hundreds to thousands of dollar instead of wasting money paying interest they don’t need to be paying.”
The VA hybrid arm loan through LowVARates.com, a division of Flagship Financial LLC, is currently offering the seven year hybrid loan at 2.75%/3.23% APR. This is one of the lowest interest rates any home owner can get on the market and also guarantees the loan will be fixed for seven years.
For more information about the 7 year VA hybrid adjustable loan please watch this video: http://www.youtube.com/watch?v=KZEOumqDqMw
Low VA Rates, a division of Flagship Financial Group LLC, is a leading national VA Lender. Low VA Rates is passionate about our Veterans and Military home owners and goes to great lengths to ensure their needs are met. Low VA Rates will find the best possible VA loan program for you.
The face of the mortgage and housing markets has forever changed in the past few years and many inexperienced banks, brokers and lenders are jumping on the VA home loan bandwagon. LowVARates has been doing VA loans for the past 10 years and has years of experience in buyers and sellers markets. Our experienced VA loan officers comprise 4 of the top 10 VA loan officers according to the 2012 Scotsman’s Guide.
Find out more at http://www.LowVARates.com.