Salt Lake City, UT, May 26, 2006 --(PR.com
)-- Interest rates on VA home loans have risen again today and maintain the steady increase they have been on most of this year. On a historical level even today's VA loan rates are lower than what rates have averaged over the past 40 yrs. Most economists expect interest rates to continue to rise not only on VA home loans, but on all mortgages across the market.
Veteran Home Owners need not fear because the Veterans Benefit Act of 2003 was signed by the President and approved by Congress a few years ago. What does the Veterans Benefit Act have to do with rising interest rates on VA mortgages? A very important part of the Act was the return of the VA guaranteed loan known as the VA Hybrid Arm. An Arm loan or adjustable rate mortgage allows veteran homeowners to elect a rate that is normally lower than the average 30 yr fixed rate. How can this be? The VA Arm loan allows veteran homeowners to choose a rate that is only fixed for a short period of time. This period of time can be as short as 1 year or as long as 5 years.
Generally speaking, the best time to use a VA Arm loan is when you are buying a house that you don't plan on staying in for more than 5 yrs or if you think interest rates will start to decrease during the time that your Arm loan is "fixed."
All qualified active and retired military have certain entitlements that they recieve. One of these entitlements is the VA Guaranteed Mortgage or VA Home Loan. "We strongly suggest using your VA entitlement when you buy your next home. We also encourage you to consult with a VA loan officer (who we can put you in contact with) about the pros and cons of obtaining a VA Arm loan."
Eric Kandell, President
Though interest rates on VA loans are rising, LowVARates is strategically positioned to help reduce the cost of finding a VA loan through their proprietary online pre-qualification search. Please visit the site today and take advantage of all of the benefits you are entitled to.