The Benefits of a Low-Interest, Hybrid VA Loan?

Veterans in a Hybrid VA Loan use their savings to help their kids through college, pay off credit card debt, buy new cars or pay off their existing mortgages quicker. What would you do with the extra tens of thousands of dollars you could save over the life of your Hybrid VA Loan?

As a veteran with an honorable or general discharge, you should at the very least investigate the benefits of the Hybrid VA Loan. It's a veterans-only loan. Though the VA approves of this loan, private lenders are the ones who actually lend the money.

Hybrid VA Loans are sometimes called VA Hybrid ARMs. You may have heard bad things about these types of loans during the recent housing crisis. It's time to take another look. Since the bubble, these loans have become much safer. With a Hybrid VA Loan, they are even safer because the U.S. Government provides a partial guarantee of these loans.

Additionally, these loans also have interest rate caps. Your interest rate will be capped at 1% on a yearly basis and will cap out at 5% over the lifetime of the loan. Also, your Hybrid VA Loan will be tied to the stable U.S. Treasury Index.

As the term Hybrid implies, this loan is a combination loan. To give veterans the low rates, the Hybrid VA Loan has an adjustable portion. This adjustable feature allows lenders to give you a better rate than conventional loans. As mentioned, your loan has two caps, so you'll be guarded against a time, should it happen, of interest rates that are rising out of control.

The fixed-rate characteristic of the Hybrid VA Loan will provide you with some peace of mind with its stability. Your industry-leading low interest rate will start lower than conventional loans and will be fixed for 3 to 5 years.

You can undoubtedly save money with a Hybrid VA Loan. The VA approves the lenders who can give these loans. We have met their high standards and look forward to answering your questions about these important loans.