Although it seems that everywhere you turn, there is a new interest rate, from variable to fixed to option ARM, interest rates for VA loans continue to go down. This is because of the Veterans Administration’s commitment to helping veterans with mortgages and home equity loans. The VA refinances are unique in that they offer very low interest rates to veterans, often as low as 3%. As one might expect, there are several va refinance rates benefits to purchasing a VA loan refinance. Here are some:
o Provides veterans with an opportunity to purchase their first home at greatly reduced interest rates. Because of generous financing programs available through the va refinance rates, veterans have a unique opportunity to get affordable mortgage loans that are comparable to the rates offered to others who do not serve in the Armed Forces. Veterans are often eligible for a host of government assistance including tax credits, additional education benefits, free or reduced priced insurance premiums, and home repairs. These benefits can significantly reduce the monthly payments a veteran would otherwise need to pay on a traditional mortgage.
For VA loans are available to all former soldiers regardless of their eligibility for the U.S. Military. Unlike most other mortgage programs, there are no minimum qualifications needed to apply or obtain a VA refinance on these loans. Veterans can apply at any bank that offers these loans and can expect to be approved. There is also no credit check. There are numerous veterans affairs websites that allow a prospective buyer to compare rates with various lenders side-by-side.
o A VA-backed refinance is more hassle-free. A typical VA-backed refinance involves filling out a standard application, receiving a confirmation, and paying a reasonable fee. After receiving approval, borrowers will receive a notice in the mail that details the terms of the refinancing plan. It is important to read through the terms carefully before submitting the application. Some terms, such as balloon payments, may require additional fees.
o Another advantage to applying for VA-backed refinances is that there are no special loans available for active-duty military personnel. Active-duty members of the military are considered eligible to receive refinancing loans if they meet the income guidelines established by the VA. Applicants should contact the lender directly to learn more about these options.
In addition, refinancing is a great way for veterans to lower their monthly outgoings. The interest rates offered through lenders are often lower than the rates offered to individuals who do not serve in the Armed Forces. This offers a great opportunity for active-duty military personnel to obtain new home loans in a more affordable manner. There are also options to defer payments on these loans and reduce the overall balance.