There are basically two different types of mortgages. They are the fixed-rate loan and the adjustable rate loan. For veterans, there is a third option. It is called the VA hybrid Loan. The VA Hybrid Loan offers the best of both the fixed-rate loan and the adjustable-rate loans. The VA Hybrid Loan is better than the normal mortgage because part of the loan is guaranteed by Veteran Affairs. With this guarantee, lenders can give you better terms. And of course this means lots savings for your family.

 Let's take a look at how this works


For your first 36 or 60 months, a VA Hybrid Loan performs just like a regular 30 year, fixed-rate loan. This means that there will be no changes in your interest rate during this period.


Then when that initial 36 or 60 months is up, your interest rate has the potential of going either up or down. However…


You have a cap. Your interest rate can never move more than 1% a year. Having this cap will protect you in a really volatile real estate market. If after your initial 36 or 60 months the market jumps by more than 1% then you will be saving money. This is great protection against the uncertainty in the market. The other thing to remember about a VA Hybrid Loan is that you can refinance at any time.


In addition to an annual cap, there is a lifetime cap. The lifetime cap on the VA Hybrid Loan is 5%. This means that your interest will never go higher than 5% above what it started at. So, if you're starting interest rate is 2.25% then the highest you will ever go is 7.25%. In the eighties interest rates hit 18%. If this ever happens again, your VA Hybrid Loan will guard you with its 5% cap.

 How to qualify for the Hybrid Loan

Veterans with an honorable or general discharge can qualify for the VA Hybrid Loan. A veteran is any service member who has served or is currently serving in the falling branches of the military:

- Army
- Navy
- Air Force
- Marine Corps
- Coast Guard
- A commissioned officer of the Public Health Service
- The Environmental Services Administration
- The National Oceanic and Atmospheric Administration

You can potentially save yourself thousands of dollars with the VA Hybrid Loan.
Speak to one of our qualified loan providers now. Click the link here.