So far this year, VA mortgage rates have remained considerably low making the market both affordable and attractive for consumers. Some of these consumers are already
homeowners while others may be searching for a permanent home. Either way, as the current trend continues, you should seriously think about these 2 reasons to consider utilizing low VA mortgage rates at this time.
The objective behind refinancing is ultimately to save money. VA loans offer two types of refinancing:
-The IRRRL is the VA streamline refinance that is probably the easiest refinance available in today’s market. It is simply a rate reduction refi that does not allow for cash out and, therefore, is quick and easy to obtain if you already have a VA loan. The IRRRL is also known as a VA to VA refinance. Since interest rates are low at this time, it is definitely a good time to refinance through the IRRRL.
– A VA refinance with cash-out can be used to payoff other high interest debts, consolidate loans or even make home improvements. This VA refinance does require the normal documentation. Homeowners who currently have a different type of mortgage, but are eligible for a VA loan, are able to refinance with a VA refinance that does not require mortgage insurance.
When Should You Consider a VA Refinance?
– The most ideal time for a VA refinance is when VA mortgage rates are low.
– When other debts that you hold has a higher rate of interest; consolidating this debt through a cash out VA refinance with a low mortgage rate can save you a considerable amount of money.
– When rates are low, it is the ideal time to reduce the term of your VA loan through a VA refinance. Very often, your mortgage payment may stay the same while knocking years of interest off of your loan.
– For those who have an adjustable rate mortgage, refinancing to a VA fixed rate loan when rates are low will provide you with the security of a fixed monthly payment.
Purchase a Home
When VA mortgage rates are low, it is a good time to consider making a home purchase. With a low rate VA loan, eligible borrowers can purchase a home with 100% financing while, at the same time, secure a long term low mortgage payment. Keep in mind that with a VA no-down payment loan, you will be eliminating the time that it takes to save money for the customary down payment. Add to this the assistance of an experienced lender and you can also eliminate other normal costs of a mortgage that would require you to put cash out of pocket.
Since VA mortgage rates continue to be favorable towards borrowers, it is time to take advantage of this opportunity to save money. Whether it is to refinance an existing mortgage or to take the leap to homeownership, now is the best time to take action.
Interested in learning more about VA loans and how you can save money for other things? Feel free to contact me at any time for more information, comparisons and help completing your VA loan application. Specializing in VA loans is what I do to make your VA mortgage process easier.
My loan process was very easy and quick. Not to mention a great loan rate. I couldn't be happier!
Capt Sam T. - US Army
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