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You may want to Refi and I would suggest VA fixed. The ARM sounds funky, I have never heard of that type of ARM. I am not a financial advisor but I think you can get a fixed right now around 5.5%....

I just want to give fellow Marines a heads up on VA home loans. Watch out for mortgage brokers and loan agents who will try to switch you off of a VA Loan. You earned the right to purchase a home...