VA Refinance Rates – How to Get the Best Information

Why are VA refinance rates often lower than most other loan rates? In general, VA refinance rates are usually much lower than all other traditional mortgage rates, mainly because the VA backs most of every loan for veterans. Veterans who served in the Armed Forces are often awarded loans through the VA instead of private lenders. Because veterans are more likely to be disabled or injured in a war, the VA often settles loans in their favor so that they are able to get low-interest, fixed-rate loans for a reasonable price.

VA refinance rates

As the VA makes plans to make loans to veterans, interest rates for these loans will naturally be lower. By putting more faith in the United States government, the VA ensures that loans go to veterans who need them most. This is done as part of the veteran’s United Home Loans Program, which was created by Congress in part to help veterans with housing needs. The program provides low down payment loans to veterans so that they may buy a new home.

In general, the higher the down payment made on the home loans, the lower the interest rates and fees. VA refinance rates are especially attractive to veterans because they offer interest rates that are half a percent lower than those offered by traditional lenders. This means that a veteran could save up to three-fourths of a percent in interest rates for choosing to get home loans through the VA. Many traditional mortgage lenders do not offer financing programs like this.

Veterans have several options available to them when it comes to getting a VA refinance. One is called a “convertible” VA refinance loan. This kind of loan allows borrowers to switch between their original home loan and a VA refinance mortgage. For some borrowers who already have a VA mortgage insurance plan in place, this makes it easy to switch from one plan to another. These special loans will allow veterans to lock in lower interest rates.

Another option available for those looking at VA refinance rates is called a “floor loan”. A floor loan simply means that if you cannot afford to pay the entire mortgage amount at that particular monthly payment amount, you can transfer your debt to the VA instead. This does not change the existing terms of your mortgage such as your amortization, your time-to-completion or your interest rate. Instead, your interest rate only changes because your monthly payment drops. This option might appeal to borrowers who have good credit and are able to pay off the monthly payments in a lump sum, but who have an interest rate which is lower than what a VA loan would provide.

It is also possible to obtain VA refinance loans and VA refinance rates from non-VA lenders. These lenders do not have to be accredited by the VA and they may offer lower interest rates and other options that do not exist for borrowers who are using VA plans. Non-VA lenders may also charge higher fees than the comparable lenders who do have VA accreditation. Therefore, before you contact these lenders, be sure to compare them on a reasonable basis. You want to choose a lender who is willing to work with you to get you the best deal possible. While you should always consider all of your options, you also want to know where you stand with your current lender.