This deck answers all your questions about the VA Hybrid loan and why it can be the best loan you may need.

1. Common Myths/Misconceptions
About the VA Hybrid Arm Loan
Helping you better understand the truth about VA hybrid arm loans

2. Lies and Misconceptions
• My payment will go up when my rate starts to go up. This is a
LIE, it can go down! We will go over real life examples
• My rate will for sure go up. Another lie. Again, statistics and
history prove that rates will go down too. I will show you.
• If I want to pay my house off faster then I should use a fixed rate
loan or shorter term like a 15 yr. Not even close to the truth.
• A 30 yr fixed rate is safer and better for someone to forecast
or plan for the future. This is the biggest of all lies
perpetrated by the US banking and mortgage industry

3. Lie #1 - My payment will go up
when my rate starts to go up
• A $250,000 30 yr fixed rate at 4.5. Monthly payment is
$1174 (PI only)
• A $250,000 hybrid loan at 2.25% has a payment of
$955 (PI only) for the first 36 months
• Assume at the end of 3 yrs the rate goes to 3.25%
• Next 12 payments will still only be $1009
• Still saving over $165 a month over your original
payments

4. Lie #1 - Continued
Possible scenario for the next 3 yrs
Year 3 3.25% $1075 per month $99 less
Year 4 3.5% $1106 per month $68 less
Year 5 4% $1166 per month $8 less
Balance owing will be $220,500 on the Hybrid Arm
Balance on the same $250,000 loan at the 4.5% rate has a balance of $227,900

5. Lie #2 – My Rate Will For Sure Go Up
• The index for the VA hybrid loan is the 1 yr CMT
• From 2001-2011 the following occurred:
• Over that 10 yr period
• down, down, down, up, up, up, down, down, down, down
• Remember what we learned in lie #1- even if rates go up
that does not mean your payment will
• We will cover some protections at the end

6. Lie #3 – You Can Pay Your Loan Off
Faster With a 30 yr Rate
• Go back to Lie #1 example of a 4.5% 30 yr fixed
rate loan and your balance pays down like this:
• We make the following assumptions with interest rates: up 1%, up .25%, up
.5%, up .75%, up .25%, up .5%, up .25%

7. Lie #3 in More Detail
• You can now see that a VA hybrid arm loan can allow you to pay
your home loan down faster if done correctly
• Why can it pay your home down faster? It is re-amortized every
year at the lower balance. 30 yr fixed rates calculate your
payment one time on day one at the original balance
• For those that save the money from the lower interest rates/lower
payments and apply that savings to their balance, they COULD
PAY down an additional $25,000 in the first 10 yrs
• A 30 yr fixed rate is safer and better for someone to forecast
or plan for the future. This is the biggest of all lies
perpetrated by the US banking and mortgage industry

8. Lie #4 – A 30 yr Loan is Safer and
Better
• One of the largest lies orchestrated by Wall Street and the
money hungry bankers who want our money
• USA is one of the only industrialized or developed nations
that feeds its people this junk. We were the worst hit by
the financial crisis and mortgage meltdown too
• Why would you want to borrow money for 30 yrs? Not a
single person watching this video will pay on their
mortgage for the next 30 yrs, let alone 10
• Time to wake up America. What do the bankers and
developers use?

9. Lie #4 – Facts and Protection
• VA has both 3 yr and 5 yr hybrid arms that are fixed for 3-5 years. Fannie and
Freddie data prove we change loans every 4-6 yrs
• Rate can never increase more than 1% per year. THIS PROTECTS YOU from
wild rate movements
• Rate can never go up more than 5% from the start. Now you can forecast a
worse case scenario
• Time to wake up America. What do the bankers and developers use?
• We do not cover this in today’s video, but you can take the
THOUSANDS in saved interest and attack your high interest rate credit
cards and literally save hundreds of thousands in interest by paying off
your revolving credit card debt

10. “Great customer service and follow through! I
would highly recommend them to handle your
mortgage needs.”
– George G.

11. Thank you for watching.