VA Adjustable Rate Mortgages (ARMS) Are in High Demand Across the Nation

It has been many years since we have we seen such a demand for VA ARM loans. There is something very important to learn from this recent trend and how this is affecting VA home owners across the country. With our great nation falling deeper and faster into a recession, more and more home owners find themselves unable to afford their homes and many other necessities.

Salt Lake City, UT, June 10, 2008 --(, along with its approved lending partners, have gone to great lenghts to assist veteran home owners in securing extremely low interest rates for the next 3 and even 5 years, while our country battles inflation, high gasoline prices and even rising food costs.

The Veteran's Benefit Act of 2003 has very important information for veteran home owners in regards to adjustable rate loans. The Department of Veterans Affairs understands that in times of economic uncertainty, like we have now, that many VA home owners can benefit greatly from reduced mortgage payments by way of VA ARM loans. ARM rates are generally 1%-2% points lower than normal 30 yr fixed loans.

Unfortunately, in light of the current housing disaster, many media outlets have convinced home owners that adjustable rate loans (ARMS) are a scary thing and should be avoided. Some media outlets have gone as far as blaming much of the housing crash on ARM loans. One of's highest ranking lenders, Flagship Financial wants to make sure VA home owners know that the VA ARM loan is way different from the ARM loans currently in the media.

"It is unfortunate how many veterans could benefit immensly from the ARM loans enacted by the Veterans Benefit Act of 2003, but due to a big misconception, most of the veterans we talk to are scared to death of the ARM loan. My loan officers are doing all they can to educate borrowers on why VA ARMs are so different and are actually very beneficial the veteran and the current economy." Said Eric Kandell, Branch Manager at Flagship Financial.

There are many benefits of using the VA ARM loan. One of the most overlooked benefits is the power of interest. If homeowners really looked at their monthly mortgage statement they would be shocked at how little of each payment really went towards decreasing the balance on the loan. This is because of interest. The vast majority of each payment goes to interest and lines the pocket of the bank. However, take a rate at 4.75% for example and much more of that payment goes towards the principle amount of the loan. Not only are borrowers enjoying much lower monthly payments, but they truly will start paying off their loans much quicker.

Benefits of VA ARM loans:
1. Much lower payments each month
2. Fixed for longer periods of time than other ARMS. 3 and 5 year periods
3. Rates can actually drop if you're on an ARM and rates get cut or go lower
4. The VA has put protective measures on these ARMS so that they cannot jump way up at one time or even go to extremely high rates years later
5. You can refinance back to a fixed rate almost seamlessly by doing a VA IRRL or streamline loan whenever you wish. along with Flagship Financial (mentioned above) is proud to announce a very special program for veterans who would be interested in pursuing the ARM loan. Flagship Financial Branch 403 VA Pro is allowing anyone that originates a VA ARM loan with its branch, the ability to refinance out of the ARM at any time with a No Point loan. "In an attempt to serve veteran home owners and assist them in overcoming their fears about adjustable rate mortgages, my office is promising in writing to allow any of our veteran clients to return to us any time in the future and we will streamline their ARM loan back to a fixed rate loan with No Points." Eric Kandell, Flagship Financial Branch 403. is not a lender and does not represent the Dept of VA. For more details on exactly how Flagship Financial's VA ARM loans work and how Flagship will assist you in the No Point refinance, please contact Flagship.

Low VA Rates
Mr. Austin