VA hybrid arm loan
I'm in the process of obtaining a 3 year VA hybrid arm loan (2.25%). The loan officer I'm working with tells me that after the 3 year initial fixed portion is up, I can lock into the prevailing current rate for the remaining life of the loan. So with the 1% max increase per year after the 3 year period, the loan would go to 3.25%, I could then lock into this for the life of the loan.My question, is this accurate? by jamesanderson99728 from Suwanee, Georgia. Jul 28th 2015
William J Acres (William_Acres)
#75 ranked lender in Arizona - 8,728 contributions
More than likely, it is not.. I have never heard of an arm rate that adjusts only one time. It's true that after the third year, you will have an adjustment and it cannot go up more than 1%, however every year for the remaining of the 27 years, it can go up or down, but will not INCREASE more than 1%. As far as being able to lock it in for 1% above the start rate, I've never heard of this, so your gut is probably right.. go find another lender or ask him to provide something in writing. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
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