Service

Getting Good VA Refinance Rates

Many qualified veterans and retired military personnel discover that qualified va refinance rates are usually much lower than a standard fixed rate mortgage. As a result, any veteran or active duty service member who is in the process of refinancing their mortgage must research and comparison shop lenders to obtain the best available mortgage rate for their individual situation. In order to qualify for the best interest rate, many Veterans qualify for an interest credit enhancement from their mortgage lender. Interested borrowers should ask their mortgage broker or VA mortgage lender if they qualify.

Qualifying for an interest credit enhancement varies from lender to lender. Most traditional lenders typically require that borrowers have at least ten percent down payment or an equivalent cash deposit to qualify. Due to the increased risk associated with issuing a home loan, a strong credit rating almost always translates to a lower interest rate. However, there are a few veterans refinance lenders that do not require a specified minimum percentage of down payment or cash deposit. Your local VA office should be able to provide you with the contact information for these lenders.
An interest credit enhancement from your lender will give you a couple different options. The most common option is to refinance your existing mortgage into one with a fixed interest rate while simultaneously reducing your payment through monthly deductions. Another option is to choose to take out a VA refinance loan which differs slightly than a regular mortgage from the Veterans Administration. Freedom mortgage loans were designed specifically for the benefit of surviving spouses and those in the Armed Forces. A key feature of Freedom mortgage loans is that homeowners may borrow as much as 100 percent of the value of the property.
Veterans who wish to refinance must meet specific criteria. The primary eligibility requirement for a VA refinance loan is to be a veteran or a member of the armed forces. If you meet the criteria, you can apply either by faxing your application to the Veterans Association or by completing the appropriate paperwork online. Once you are approved, you will receive a notice in the mail notifying you that your VA refinance has been approved. You will then receive the appropriate paperwork and will be required to sign the loan documents. Once you sign the papers, the title to your home will change to reflect the VA loan that you signed.
There are several advantages associated with Veterans Affairs VA refinance loans. First, it provides an excellent opportunity to get quality financing at very competitive rates. Second, if you are a veteran or a member of the military, you can qualify for these loans even if you have credit problems or poor credit ratings. Third, you can avoid paying higher interest rates through conventional financing by using your VA loan. Finally, you may also be able to defer service related expenses such as bonuses, commission, taxes, and homeowners insurance premiums for a specified period after you attain the first degree of service.
However, before you get your VA refinance, it is important that you find out the eligibility requirements. For qualifying, borrowers need to be 62 years of age or older, be currently enlisted in the armed forces, and have a fixed mortgage insurance rate. Qualified borrowers also need to meet other financial requirements such as not being bankrupt or delinquent on any existing loans, having a steady income that is at least slightly above the national average, and possessing a fixed home value. Once you meet the eligibility requirements, you will be given a request for a VA refinancing loan amount.