What are the advantages/disadvantages of a VA 5/1 loan?

More info is needed but the only advantage is that it will most likely be a lower rate than a fixed 30 year. The bad news is no one knows where rates will be in 5 years and your loan will then start to adjust based on the index and margin used.

The advantage would be lower rates for the first five years than fixed rate options. The disadvantage would be the uncertainty after that initial five year fixed loan period. If you plan to be in the home long term, conventional wisdom says go with the fixed rate. If you are uncertain or know you'll be moving before the loan adjusts, choose the ARM.

A lot of times the initial rate on any ARM is lower than a 30 year fixed would be the advantage. The rate is only locked for the first five years is the disadvantage.

The 5/1 Arm will probably offer you a loan interest rate for the 5 years that its fix as an advantage but after that, the rate will increase according to your contract.

Adjustable rates loans are great financial tools for many... A 5-year fixed, then becomes adjustable will give you a much lower interest rate, which will not change for the first five years. After that, the loan is adjustable once a year. Many people take them because they do not plan on being in the house more than five years, so they will never see any adjustments at all. www.JoeMetzler.com