Does it make sense to refinance from 4.75% to 4.25%?
That's a good question. It's a no brainer if you are going from an FHA loan with mortgage insurance to a VA loan with no mortgage insurance and the loan size is large enough.
For example, Don was a disabled veteran in Long Island who was referred to my by his son, Jim, whom I also did a VA loan for. Don, served our county in Vietnam. In 2009, a mortgage swindler came to town and wreaked havoc on him and a few of his friends with regards to their mortgages. Though at the time they thought nothing but good about this Mortgage officer, they would soon come to find out about the shady operation he had going on. Don made out the best of all of his friends. He at least got an FHA fully amortized mortgage, but at the expense of paying $400 a month in mortgage insurance on his $459,000 property. We were able to help Don refinance from the FHA loan into what he should have been presented with 4 years ago...the VA loan. Though the rate didn't change dramatically, his payment was decreased by $400 a month because VA loans do not have mortgage insurance.
If you or someone you know is a veteran, make sure you ask them if they got a VA loan. If for some reason they didn't, it may make sense for them to look into it.
Bringing truth and transparency to the mortgage industry,
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