+1 vote
I would like to know the lender said caps r now on all VA loans if u go into arms can only go up if after 5yr arm market adjust and at that only a point per year?  Is that true and also he said in 10 years because of all new rules after crash it hasn’t moved hardly at all so even thou in 5 yrs would rather not refi chances r could just stay put?  Which means after 5 yrs no refi again Is this true?  Thank U
asked Nov 21, 2017 in VA Loans by anonymous

1 Answer

+1 vote
Hello. I hope I understand your question, because it is a little ambiguous. Please clarify what you meant if I misunderstood what you are trying to find out. Government-backed ARMs do have different rules than conventional (non-government) loans. At this time, a VA 5/1 hybrid ARM has an interest rate that's fixed for five years. After that, it may adjust up or down, depending on the index to which your rate is tied. However, no matter what, your rate would not be able to increase by more than one percent at its annual adjustment, nor could it go higher than five percent over its initial rate. So if you start with a 3.25 percent rate, you get 3.25 percent for five years. After that, the highest it could go in Year 6 would be 4.25 percent, and if that happened, the highest it could go in Year 7 would be 5.25 percent. Over the life of the loan, the highest your rate could go would be 8.25 percent.
answered Nov 22, 2017 by GinaPogol (47,650 points)

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