VA ADJUSTABLE RATE LOANS

VA ADJUSTABLE RATE LOANS

 

We offer VA offers Adjustable Rate Mortgage ("ARM") in which the interest rate and monthly payments for P&I (principal and interest) may change during the life of the loan.

 

A VA ARM, differs from a fixed rate loan in this major way: with your fixed rate loan, the P&I payments and interest rate are constant.  ARMs differ from GPMs (graduated payment mortgages) in that with GPMs, the payment amount increases over the first 5 years of the loan while the interest rate remains the same.

 

With a VA ARM, your quoted interest rate is the interest rate that will be charged for the first year of the loan, and it may remain in effect for 12 to 18 months depending on the change date set out in the terms of the ARM. That initial interest rate is agreed upon by the lender and the veteran, and must reflect current adjustable mortgage rates.

 

The change date is when the annual adjustment of the interest rate will occur, and it is always disclosed in the documents signed at loan closing. The initial change date must occur between 12 and 18 months after loan closing, and then annually on the same date.

 

However, lets day that who have a great career track in the military over the next 5+  years and you forsee an increase in salary.  You're undecided about the constancy of a Fixed Rate Loan and the lower payments available through an ARM. It that case you may want to consider and VA HYBRID ARM.  The VA Hybrid ARM Loan offers an initial fixed interest rate for a period of three or five years, and then it adjusts annually.

 

For example, a 3/1 or 5/1 VA Hybrid ARM offers a 1% annual interest rate adjustment after the initial fixed interest rate period, with a 5% interest rate cap over the life of the loan. Interest rate adjustments occur on an annual basis, (except for the first adjustment which may occur no sooner than 36 months from your first mortgage payment on the 3/1 VA Hybrid ARM Home Loan or 60 months from your first mortgage payment on the 5/1 VA Hybrid ARM Home Loan.)

 

So, as your salary rises, you can manage larger payments; and having smaller mortgage payments to start that can fit your budget.

 

Aside from the Military outreach programs that we proudly support. 
We also donate  to local Orlando charities for the less fortunate!  Here are just a few !
Carlos Matos - Chairman
newsletter-banner.jpg

Speak with a Home Loan Specialist Today

1-800-655-1345  Ask For Doug

Representatives Available 24/7 to Better Serve You

© 2018  1st Florida Lending Corp.

 

NEWVAMORTGAGE.COM  
1st Florida Lending Corp.

2151 Consulate Dr. Suite 8
Orlando, Florida 32837 

Tel: 407-300-2558 / Fax: 877-401-9955

 

We are a VA approved lender; Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.