Everything You Should Know About A Va Hybrid Loan

By Author: John Cory
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Veterans of the armed forces who are looking through the loan options offered through the Department of Veteran Affairs may have a few questions about the VA hybrid loan. You might have thought of a car with excellent fuel economy when you read the word 'hybrid,' though, what it actually refers to is the basic nature of this special kind of loan. If you have any doubts about what that word says about the function of your mortgage, you may want to take a moment to consider the basic facts.

This style of mortgage is named pretty appropriately since it is offered with a fixed introductory rate and then converts to an adjustable one after the introductory period has ended. There are loans that offer a three year and a five year period with the fixed introductory rate before switching over to an adjustable rate for the remainder of the mortgage. The benefit here is that you are allowed all that time with a low interest rate that stays low.

Having access to those lower fixed rates means that you will be able to spend less on your mortgage, which also means that you will have a better shot at buying a much nicer ...
... home. While you're enjoying those fantastic interest rates, you will have the chance to pay down the interest and start working on the principle a lot faster.

You may feel a bit nervous as you approach the adjustable rate of your VA hybrid loan, but you will soon find that there is nothing to be worried about. Thanks to special regulations written up by the Department of Veteran Affairs, the rate can only change so much and will never take any dramatic turns.

The thing about this is that your rate can only be adjusted by one percent at a time, only one time over the period of a year, and only a by a specific amount through the entire life of the loan. Having these types of regulations in place make it a whole lot easier to afford your home, because you know what kind of changes might take place and can prepare for them accordingly.

Clearly, a VA hybrid loan is a great mortgage opportunity due to its low introductory interest rate and the regulations intended to keep it low. Now that you realize why they are such a big deal and how they can help you, it may be time for you to look into getting one yourself.
VA Home Loan program makes it easier for veterans to qualify for home financing with less stringent income and credit qualifications; just check out va hybrid or va streamline. If you want to save time, money and frustration simply get in touch Sallie B. Leiter the best Veteran's loan specialist online.