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VA Refinance Rates – Tips To Reduce Your Monthly Payment

If you are a veteran, you may be able to secure lower VA refinance rates. The Veterans Affording Assistance Act, or VAMF, is a government plan that was implemented in order to help veterans access mortgage loans for their home loans. Through the plan, lenders are forced to give competitive rates and terms to qualified veterans. If you meet the eligibility guidelines, your interest rates may decrease as much as three percent. Here are va loan refinance several tips to help you find the best rates on your mortgage refinancing:

Know your eligibility criteria. The plan permits you to refinance either fixed-rate mortgage or a va refinance loan with up to 90%. If you qualify, the plan allows for you to refinance either fixed-rate mortgage or a va refinance loan with no down payment. VA loan eligibility requirements vary from lender to lender. Therefore, it is advisable that you shop around and compare quotes from various lenders before deciding on your eligibility.

Know your existing mortgage terms. You need to know the current interest rates and loan term of your existing mortgage to determine whether or not it will be beneficial to switch to a va refinance. For instance, if you have a 30-year fixed rate mortgage, refinancing to a fixed rate mortgage term of fifteen years would save you four percent interest. However, if your mortgage has a balloon loan term (typically thirty years with a fixed rate), switching to a fixed rate mortgage term of fifteen years would result in higher monthly payments. You can use these calculators online to determine your potential savings.

Compare your homes. Refinancing to another mortgage may allow you to lock in lower interest rates. Check out the prices of comparable properties in your area to see if your rates will be lower. Mortgage rates and adjusted interest rates can affect your calculations as well.

Consider appraisal services. Some sellers price their homes higher than others. va refinance loans may also allow for more affordable prices. Some appraisals only require you to list the house as for sale by owner and do not require an appraisal. Keep in mind that banks and other lending institutions require an appraisal before allowing you to purchase a house. Appraisal services can help you obtain the appraisal you need in order to better negotiate for lower rates.

Know your mortgage insurance options. If your home is currently insured through a conventional mortgage, check out your various options. While some lenders offer flexible repayment plans, such as income-contingent repayment or amortization, others do not. Contact several different lenders to see which ones offer flexible repayment plans; this can significantly reduce the amount of interest you will have to pay on your new loan.