Home Loans for Veterans
If you are a Veteran with a mortgage at an interest rate of 4.5% or more, this information may be of great benefit to you.
You may be able to obtain a streamlined refinance loan to pay off your current loan without an appraisal. The loan to value ratio is based on the original loan balance. And, the loan to value can be 125% and higher with a credit score of 700+. Scores 660-700 can go to 100% loan to value.
Example- Streamline (VA to VA) Original balance of $250,000 is now down to $245,000 and you are now paying 5% interest. You could go from a principal and interest payment of $1342 down to $1117. This is a savings of $225 per month.
If your current home loan is not a VA loan and you have eligibility, you can refinance into a VA home loan. This type of refinance would require an appraisal. You can get cash out if you wish over and above the pay off amount.
Example-(Refinance from a non VA to VA) Original balance of $250,000 is now paid down to $240,000 and now paying 5.25%. This would reduce the payment from $1380 to $1094 per month. This is a savings of $286 per month.
Other notes- Manufactured homes are eligible for VA home loans but at higher interest rates.
When an appraisal is required, the fee is not collected until closing. This fee and the other closing costs can be added to your loan amount. So, there aren’t any up front, out of pocket costs. And, if calculated properly, no funds would need to be brought to closing.
Borrowers choose their own attorney to handle the title work and closing. And, they choose their own home owners insurance agent.
It doesn’t hurt to check out your options. Call and speak with a mortgage professional and find out how your certificate of eligibility can help your financial well being.
Written by: JoAnn Moore, The Mortgage Market of Delaware, LLC., President and Owner, Licensed Mortgage Professional NMLS # 165477, Certified Military Housing Specialist. Georgetown, Delaware 19947. Office 302.855.1306 Cell 302.236.1229 MMODJoAnn @aol.com.