Harry,

This company offers only one program, the 3 year ARM - that means Adjustable RATE Mortgage. They only offer the 3 year ARM because it is in THEIR best interest not yours.  Any lender that doesn't offer a variety of options would not have your best interest in mind.

Logically, if you are in a 30 year fixed at 4.75 currently and the new loan could increase 8% over the life of the loan, then no it is not a good deal for you unless you intend to sell your home prior to the increases.

What you can do is a streamline VA loan for a 30 year fixed rate which could get you into the high 3's or low 4's, let the lender pay your closing cost (thus keeping your 12k they are charging) and you won't have to wonder at what point your payment will increase.

Emery Federal Credit Union lends in all 50 states and I would be happy to review your situation with you personally or refer you to a trusted lender.  I also have several references I can provide to you.  My suggestion is you google the lender that has targeted you and I believe you will find there are several borrowers out there who feel cheated.

Sincerely,

Susan Wallace

571-283-1337 ph

www.LoansBySusan.net

susan.wallace@emeryfed.com

Harry, it sounds like an absolute horrible idea and likely a scam.  I strongly encourage you do stick with your 4.75% fixed.   By hisroric standards, you have a terrific loan product and rate.   To see if any form of refinance makes sense,  email Susan Wallace at susan.wallace@emeryfed.com.
to get her view.   

On this teaser type loan, you may get a good deal and save a few bucks for a couple of years, but if that rates goes up to 8%, your payments could come close to doubling!    Don't do it and don't let this guy back in the door and don't give him the time of day on a phone call either!     While I don't know when rates will go up, I do believe they will eventually.   Then you will be stuck!  

Joe Gladden

We are getting numerous comments from some of our clients and forum users who financed their homes with VA loans regarding direct mail and telephone scams offering extremely low streamline refinance rates.These are coming from a number of companies but Amerigroup and Mortgage Investors are two of the names we are hearing. In all liklihood they are getting folks addresses from the public record of the lien which would probably indicate a VA loan. First, streamline VA is a great option, if the rates have dropped. But, these companies are quoting rates as low as 3.5% which just isn't possible.  If you want to explore a streamline, call your current lender and see what they will offer. Or ask Susan Wallace for a sanity check on this forum about any "to good to be true" offers. Proceed with caution if you choose to talk to these folks.  VR SAM's recommendation is to completely ignore any direct mail / phone telemarketers and if appropriate, report them for "do not call list" violations. Joe Gladden, Managing Partner, VR SAM