If you have been shopping around for refinancing options for your home, you might have heard of loans that are offered through the Department of Veterans Affairs. These are a few signs that a VA refinancing option might be best for you.
1. You Qualify for a VA Refinancing Option
First of all, you have to make sure that you qualify for a VA loan. VA loans have some requirements, such as that you should have either served a certain amount of time in the military or that you have to be the spouse of someone who has died or been harmed while serving in the United States Armed Forces. If you aren't sure if you qualify, you should talk to someone from the VA.
2. You're Paying a High Interest Rate
As you already know, the amount that you pay in interest on your home loan can greatly affect how much you pay for your house over the lifetime of the loan. If you are paying a high interest rate -- such as if you had bad credit when you initially purchased your home or if you have chosen a subprime lender to finance your mortgage -- then it might be time to talk to someone about refinancing your home with a VA loan. This is because VA loans are known for having lower interest rates than many other mortgages, which can save you a fortune over time.
3. You Want to Refinance Your Home's Total Value
Most refinancing options require that you have some equity in your home. Therefore, if you have borrowed money against your equity to make home improvements or cover other expenses, you might have trouble refinancing through most channels. You might also have trouble if you are looking to borrow money against the value of your home so that you can make improvements to your house. Luckily, VA loan refinancing options offer up to 100 percent financing, so this type of refinancing could be the best choice for you.
4. You Don't Want to Pay for Mortgage Insurance
As you probably already know, mortgage insurance can be very expensive and can really cause your monthly payment to go up. Luckily, VA loans do not require mortgage insurance, which means that you can reduce your monthly payment significantly.
As you can probably see, there are plenty of benefits to refinancing to a VA loan. If this isn't something that you've thought about, consider these signs that you are a good candidate. Then, you can talk to a mortgage officer about your VA loan refinancing options.
For more information, contact Mann Mortgage or a similar company.