Types of VA Loans

0:00types of VA loans. This is a money minute from in charge education foundation and military money.com. The VA guarantees five types of home loans and here's what you need to know about each one. A fixed rate mortgage is a 15 or 30 year mortgage where the interest rate never changes and monthly payments remain the same. An adjustable rate mortgage is a fluid loan where the interest rate increases with the market's rate. The first year rate is generally a couple percentage points below the market rate. The cap is the upper limit of the interest rate. A VA hybrid adjustable rate mortgage is fixed for three or five years and then adjust one percent annually with the five percent cap. Short term home buyers like this loan because of the low rates in the early years. Graduated payment and growing equity mortgages both start with low monthly payments which gradually increase. A graduated payment mortgage begins to increase in the sixth year and the growing equity mortgage will gradually increase payments into the principle of the loan for an early loan payoff. This money minute is made possible by in charge debt solutions. Visit us online at www.inscharge.org