Adjustable VA Loan Rates Are Unlike Anything Else Out There ...

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By Scott C. Antle

There are many great offers available from the Department of Veteran?s Affairs, and along with those are the unique adjustable VA loan rates available to vets and active military personnel. If you happened to ask the rest of the homebuyers across the country how they feel about adjustable rates, they probably wouldn?t have anything good to say. However, the sort of adjustable rates that are available to members of the VA are completely different than what a lot of those people are used to.

The great thing about this type of loan for a veteran is that there cannot be an increase or decrease in their rate that can surpass more than one percent each time it adjusts. And to make things even better than that, the one percent that it can adjust can only be added or subtracted one time per year, so after a one percent adjustment, they don?t have to worry about anymore adjustments for an entire year.

A civilian would likely be shocked to learn of this type of system, because they are still dealing with the chance that there rate will adjust so much in a single year that they can no longer afford their home. Veterans and military personnel don?t have to worry about being thrown out of their homes because of a single rate adjustment, because the VA would never allow such a thing to happen through one of their specially organized loans.

You might think that if your rate increases every year for ten years that your rate will end up being ten percent higher, but you can guarantee that this sort of thing does not happen to any member of the VA. On top of the fact that the rate can only be adjusted by one percent once in a given year, there are only so many years that it can be adjusted, so if your rate can only be adjusted five years, the most your rate can ever increase is by a total of five percent.

There are all kinds of reasons why an adjustable rate is considered a necessary part of the lending business these days, like how it gives the lender more room to negotiate superior terms, but the VA simply makes sure that you are always the one benefiting the most. There is no way to deny that VA loan rates are some of the very best anyone can get anywhere, so any military personnel or veterans who are hoping to purchase a home anytime soon should consider taking advantage of them.

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