VA Refinance Rates – Get the Best Mortgage Deal When You Qualify
Getting a VA refinance in order to secure a low interest home loan has become popular among veterans. Interest rates on most types of loans are very high, especially adjustable rate mortgages. But with a VA refinance, you can enjoy more benefits than you will ever find with an ordinary refinance. A VA mortgage is a great option for those who want to secure a home loan at a reasonable interest rate. Here are the reasons why:
One of the biggest advantages to getting a VA refinance is the freedom mortgage option. With a freedom mortgage, you are able to choose from any refinance type. You have the freedom to choose from fixed rate and ARM type refinance. These two types of refinance typically have different terms. With a freedom mortgage, you are able to choose a loan type that meets your specific financial objectives.
The second biggest advantage that a veteran can enjoy when getting a VA refinance is lower mortgage rates. Many lenders charge much higher mortgage rates for veteran customers. However, with a VA refinance, you can expect to pay much less than what you would pay with an ordinary loan. Some lenders are even offering up to 60% lower mortgage rates for qualified veterans. This is simply unheard of for most conventional homeowners.
Also, with a VA refinance, there are no liens or prepayment penalties associated with the loan. With most conventional loans, there can be fees associated with refinancing. In addition, there are prepayment penalties if borrowers refinance within a certain period of time. In addition, there are costs associated with switching lenders, such as application fees, closing costs and additional points for credit inquiries. Veterans have fewer financial responsibilities, which allows them to save money in the long run.
When getting a VA refinance, it is important that you know exactly what your eligibility requirements are. If you are currently retired or disabled, you are automatically considered for a VA first loan. However, if you do not meet one of these two criteria, you may want to contact a specialist in your specific case. Even if you do qualify, you may want to go ahead and get your first mortgage through a conventional lender because it will take longer for you to get your interest rate approved.
A second reason why it is a good idea to get your VA refinance requests approved fast is because there will be no prepayment penalty associated with this type of refinance. Typically, once you begin making payments on an existing loan, your interest rate will begin to increase. However, if you refinance with the Veterans Administration, you will be able to pay off your mortgage faster because there will be no penalties attached to it.
There are several qualifying factors that will determine the interest rate that you can receive when applying for a VA refinance. First, your income is one of the most important factors. Your income will determine if you qualify for the lowest mortgage payments and the longest repayment term possible. Your qualification for the lowest mortgage payments and the longest loan term will be based on several factors, including:
If you think you may meet the qualifications for a VA refinance, do not delay. Get all of your information together before January 1st. Many lenders will give notice of qualifying for their loans prior to this date, so get your forms in advance. Your surviving spouses may qualify for low interest rates as well.
If you do not meet the income requirements for VA refinance, there is still time to get cash for your home. Do not wait until the middle of December to apply. You can still qualify for VA loans until April 1st. One way to make sure you get approved for the refinance loans is to start looking for lenders who will offer competitive rates immediately. The competition will mean lower VA loan eligibility fees and lower interest rates.
If you have been honorably discharged honorably and are currently serving in the Armed Forces, you will qualify for lower interest rates. If you are a veteran of the Korean War, the VHA offers loans to active duty personnel. However, there are still eligibility qualifications for those who were discharged more than 10 years ago.
As mentioned above, getting a cash-out refinance loan for your home is only possible if you own a home equity. A home equity loan is available to borrowers who do not own a single-family house. In other words, you cannot qualify for this option if you are a homeowner who does not own any property. Homeowners need to understand that refinancing is not free money; the interest will have to be paid.