VA mortgage rates today are lower than ever. If you have good credit and a fair amount of equity in your home, you can refinance into a VA loan and save money. The Veterans Association offers special loans to veterans for home purchase and first time home loans. Interest rates are often low due to the large number of approved borrowers. Qualifying homeowners are subject to strict lending guidelines.
There are other options that will save you money. One of the main reasons that mortgage rates today are low is because there are so few homes on the market. Interest rates are at historical lows because banks want to take their chances on the slowest-growing segment of the housing market. Borrowers can take advantage of this by negotiating for a VA loan. If you have an excellent credit score, have some equity built up or are a veteran, you may qualify.
Even if your credit isn’t perfect, you can still get a VA mortgage. There are two types: Regular and enhanced. A regular fixed rate loan offers you the same interest rate that you would receive from a conventional mortgage lender. An enhanced loan puts you into a plan where you pay interest plus a variable portion of the VA funds that you use for your mortgage. Depending on your income, the amount of interest that you pay can be lower or higher.
Another advantage to these types of loans is that they don’t require a tax credit. If you are a veteran, you may also qualify for a tax reduction due to your status. Check with your tax preparer to see if you may be eligible. With most VA mortgage refinancing loans, the interest rate is also tax deductible.
If you’re planning on using a VA mortgage rates today, the process is quite simple. Your financial institution or credit union will provide you with a checklist of documents that you need to gather and then sign on the bottom of the page. The forms include a declaration of your disability, proof of eligibility for the program, and a completed application. You may also need to provide a statement verifying employment.
Many people wonder if a VA refinance is a good way to obtain a lower mortgage rate, especially if the interest rates on prime mortgages have increased in recent years. Before deciding whether this type of mortgage is right for you, consider whether or not you have good credit. Poor credit will keep your interest rate closer to the prime rate. If you do not have good credit, a refinance may be better for you than some other options. It’s not the only option, though, so you shouldn’t rule it out if you are considering mortgage rates today.
Although the costs associated with a VA refinance are more than what you would pay for a first mortgage, there are also benefits. Interest that is paid on a VA mortgage will be tax deductible, which could mean significant savings over time. Your home can be used as equity for purposes such as home equity loans, second mortgages, and home equity lines of credit. This allows you to get the equity you need for different projects, like education or healthcare.
When you decide that a VA refinance is right for you, start looking for your new lender online. There are many choices available, including lenders from all across the country. They generally offer competitive mortgage rates today. Take the time to shop around and compare several lenders before making a final decision. There are other mortgage options available, including government-sponsored initiatives and veteran-owned refinance mortgage companies. Regardless of which option is right for you, be sure to check out all of your options.