VA Hybrid Loan Versus Fixed Rate Refinancing (interest rate, fees, closing)

[sonicbuffalo]

I was wondering if anyone could tell me whether it is better to go from a 4.5% interest rate, which we have to a 3.75% with .403 closing costs versus a 3.25 hybrid VA loan with virtually no origination fees...which would cost me about $3500? Does anyone have any idea as we are looking to stay in the house for 30 years or so...not planning on moving.

[nmb30]

Originally Posted by sonicbuffalo

I was wondering if anyone could tell me whether it is better to go from a 4.5% interest rate, which we have to a 3.75% with .403 closing costs versus a 3.25 hybrid VA loan with virtually no origination fees...which would cost me about $3500? Does anyone have any idea as we are looking to stay in the house for 30 years or so...not planning on moving.

Stick with a fixed rate if you're planning on staying in the home long term. Any money you save in the short term by taking out a VA hybrid is going to be eaten up when you refinance back into a fixed rate if/when the adjustable rate starts going up.

[sonicbuffalo]

Originally Posted by nmb30

Stick with a fixed rate if you're planning on staying in the home long term. Any money you save in the short term by taking out a VA hybrid is going to be eaten up when you refinance back into a fixed rate if/when the adjustable rate starts going up.

Thanks for the advice.....you're right!