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Released  January 17, 2017
By Megan Greuling
  • The advertised loan is a VA 5/1 ARM (Adjustable Rate Mortgage) with a 30-year fully amortizing term from actual offers posted to consumers by Network Lenders.
  • After the initial period, the variable interest rate and payment will adjust every year and equal the total of the 12-month LIBOR index (1.92% as of 13-Dec-19) plus a margin of 1.95%. (NOTE: Your Lender may use another index such as Treasury, Prime etc. this can impact the overall rate and APR you are quoted so ask your lender what index it uses).
  • The maximum periodic change in the interest rate is % with a maximum rate increase of % above the initial interest rate. (NOTE: VA Hybrid ARMs utilized a maximum periodic change in interest of 1% and the maximum rate increase is 5% above the initial interest rate ASK YOUR LENDER what the maximum increase will be after your initial rate period ends and what the maximum rate will be on your individual loan).
  • If the interest rate adjusted to the maximum rate (which could not occur until after the fifth year), the maximum monthly payment would be 1,600.82 for $225,000.
  • There is no prepayment penalty.
  • The Annual Percentage Rate (APR) is variable and is subject to increase or decrease, so your payments may increase or decrease each year after the initial period.
  • The chart below shows the interest rate, APR, and the initial monthly payment:

    Payment Examples

    Loan Amount Initial

    Interest Rate

    (for 60 months)

    APR Initial Monthly

    Payments

    (for 60 months)

    $225,000 3.25% 2.645% 949
  • Disclosure Assumptions
  • Interest rate quoted assumes a FICO score of 720 with a maximum loan-to-value ratio of 80% on a primary residence.
  • The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lenders.
  • VA benefits criteria will have to be met and are subject to change.
  • While there is no down payment requirement on a purchase or a buy down requirement on a refinance for a VA Loan and you may borrow up to 100% of the value, lower rates are generally offered to those who do in fact make a down payment or have equity in their home. No mortgage insurance is required in either situation. Note that a VA Funding Fee may apply.
  • The initial interest rate is fixed for 5 years. The disclosed APR is based on 0 discount point, % origination fee and additional prepaid finance charges which will be due at closing. First adjusted payment will likely increase to approximately 1,204.14.
  • Interest rate and APR are variable and subject to increase
  • Not available in all states and not all lenders participate in the VA Loan Program.
  • Rates are subject to change daily without notice.
  • Payment amounts shown do not include taxes or insurance.