VA Hybrid arm loan 3/1

VA (and FHA and conforming ARMs) serve a valuable purpose for some homeowners who either a) intend to move or refinance within a few years, b) need the lower payment ARM’s offer to qualify for their mortgage, or c) are convinced that rates will stay low in the future. Will say that the bulk of ARMs I see written these days are for either 5 or 7 years rather than 3, and that less than 10% of total loans I write are for ARMs these days….but certainly wouldn’t classify them as a “ripoff”. You just have to understand what they are, look at the savings for the fixed rate period versus potential future payment increase for your specific situation.