April 13, 2024


Mad about real estate

Get a VA Loan to Refinance your Home

Way back from 1944, the Veterans Administration or VA of the U.S. has been financing as well as refinancing homes for veterans from the armed services under the G.I. Bill of rights or the Servicemen Readjustment Act. Under this act, veterans can get approved easily for a home loan or a refinancing home loan that is guaranteed by the government in the U.S. even though the actual loan might be provided by a bank, a mortgage company or other financial institution. VA refinance is available to anyone who has served in the military in the U.S. Refinancing you home enables you to take benefit of a lower interest rate and bring down the payments you have to make each month to a more controllable amount. If you get a VA loan to refinance at just half a percent lower rate of interest, you can be sure that you will save a few thousands in dollars over the life of your VA loan.

Besides, under President Barack Obama there has been a new option introduced for veterans who are on the lookout to refinance their home mortgages. It is known as the Making Home Affordable program. Under this new program, there will be plenty of homeowners who will be able to refinance at a rate which is more affordable helping then stay in their homes and at the same time have a few dollars left in their pockets. To get a VA loan like this it is required that your first mortgage does not exceed 105{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the market value your home currently has. In other words, if your home is evaluated at $100,000, it is not possible for you to owe more than $105,000 on your existing mortgage. VA refinance makes it possible for many mortgage holders and VA homeowners to refinance their loans to a new amount that they can handle currently and into the future.

A lot of homeowners who are trying to refinance their home find that the market value might have dropped to such an extent that they cannot find a lender who will give them the new refinancing that they require. But the Making Home Affordable program has made it easier for VA homeowners to get a VA loan. VA refinance is indeed the best way to go.

Before homeowners can get a VA loan, the lender will give them a good estimate that will permit them to see the new rate of interest as well as the new payment amount that will have to be made every month besides other terms which they can compare to what they are currently paying. This helps the homeowner to see how much he can save and decide if refinancing is the right option for him at that point in time. Most often than not, refinancing is the right path to take but then there are exceptions to every rule. But with interest rates at a low that they are currently at, VA refinance should be just perfect.