How USAA Funds Refinancing
If you are looking for refinance rates today, you will probably be looking for a lower monthly payment and perhaps an interest rate reduction. Refinancing your home loan is a great way to take the equity out of your current loan and lower your monthly payments and interest rate. It is important that you know what your refinance options are before you even begin to talk to a professional mortgage lender.
Most people refinance their homes for one of two reasons. Either they want to build equity in their home and raise the value, or they want to reduce their monthly payments and interest rate. Typically, a homeowner will refinance with the same bank or mortgage company that has given them the loan in the first place. In some cases the original lender may be willing to refinance the loan themselves, or at least allow you to take over their services. Many times, however, they will prefer to have you refinance with them.
The first step when considering a refinance on your home loan is to find the best interest rate that you can from a reputable lender. Two of the most popular and reliable sources are US banks, because they have the most state-of-the-art technology for lending and they have the experience to help you through the process. A US bank best refinance deal will have low closing costs, minimal appraisal fees and allow you to borrow money for a longer period than your current loan term. A North American savings bank best refinance deal will have higher closing costs, larger down payments and perhaps allow you to borrow more money than you currently do.
One of the things a North American bank best refinance deal has that a US bank does not is a lower introductory rate. Lenders like to target potential customers with loans with shorter terms. This gives them more room to make a profit and it also saves them money by not having to charge a long-term interest rate on the loans. If you currently have a mortgage and are thinking about refinancing, a North American bank lender may offer you the best refinance rates available at the moment. Banks know that many people need to refinance their loans in the near future, so they are offering these shorter terms right now.
Another benefit to looking for a refinance versus a conventional refinance is the flexibility offered by the latter. When you refinance your home with a conventional mortgage, you cannot choose to extend the terms until the end of your current loan term. You can also extend your terms up to thirty years, but you must choose a longer loan term. With a refinance on the other hand, you can choose to refinance as soon as you get a lower rate and you do not have to wait for the end of your current loan.
Some of the factors that contribute to high refinance rates are adjustable rate mortgages (ARM) and prepayment penalties. ARMs are loans that come due when the borrower is not able to pay, whereas a prepayment penalty is a fee that is assessed each month if you do not pay off an existing loan earlier than the due date. Both types of loans are expensive for homeowners and many are finding it difficult to make both payments. A refinance may be the only option.
Homeowners that want to refinance their home loans may also qualify for a federal loan program. The Federal Housing Administration offers two different programs that are eligible for qualified borrowers. First, there are the FHA loans that are insured by the Department of Veteran’s Affairs. Secondly, there are the Navy Federal loans that are insured by the Department of Veterans Affairs. Both loans are backed by FHA Secure loans which require low down payment requirements and a fixed interest rate.
Another program that is offered by the USAA is the USAA Guaranteed Refinance Program. This program is available for veterans who are in the United States veteranically or are in an eligible position to receive financing through the USAA. Qualifying for this program requires that you have an FHA loan or a VA mortgage and that you are at least 60 months old. Once you meet these criteria you can apply for a refinance on any one of the four loans managed by USAA.