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VA ARM versus fixed rate? what's best please

My husband and I are being relocated for a 3 year term and a counselor recommended we get an adjustable rate mortgage through VA. However I am concerned about rates going up. Which is more advantageous for us
By gerand78949365 from MN Jun 2nd 2014
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Adjustable rate mortgages are a great tool in my opinion if you know for sure you are going to be moving... So for example, you can get a lower rate on a 5-year fixed, then becomes adjustable loan versus a 30-year fixed. If you know you are moving in 3-years, there is zero risk. My office is in St Paul, visit www.VA-IRRRL-Loan-MN.com

Jun 2nd 2014

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I can understand your concern about adjustable rates. Typically when people look at adjustable rate mortgages, they consider a program where the rate is fixed for a period of time. This will allow you to take advantage of lower rates and never see the adjustment. You can call me at 800-536-0233 or find me at www.fastclosingnow.com. I'm located in the NW Suburbs but work with clients all over Minnesota. Good luck

Jun 2nd 2014

An adjustable rate is a great option for you if you are absolutely sure that you will not be keeping the home for longer than a specified amount of time (depending on if you go with a 5/1, 7/1, etc). If there is any doubt that you may be in the home longer that the initial period, my advice would be to get a fixed rate. If you are absolutely sure that you will be moving with that initial period, my advice would be to take advantage of the lower rate with an ARM. Hope this helps! Have a great day.

Jun 2nd 2014

With a VA loan, the Arm rates can only adjust 1% per year after the initial fixed period, so if you didn't end up moving after 3 years, the most your rate would adjust on the 4th year, would be 1% (up or down). However, you would benefit from the lower rate the first 3 years. There are also 5 year arms available as well, with a 30 year amortization. Feel free to contact me for more information. wnelson@lakeareamtg.com 651-762-3572

Jun 2nd 2014

A 3 year term makes perfect since as you are being relocated for a 3 year term. You will save hundreds of dollars over the 3 years with your lower interest rate.http://www.newhomemortgagemn.com

Jun 2nd 2014

A va arm is an excellent option for you - the risk is small even after the Initial 3 year term on a va arm the rate can only go up 1% per year so your rate risk in the future is less - we make loans in Minnesota any questions about va call anytime 316-218-5352

Jun 2nd 2014


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