VA Mortgage Refinancing Schemes

2007-03-08 10:33:40

( Financial )



There are several VA mortgage refinancing schemes available for individuals who have existing VA loans.

One type is for people who have a VA mortgage loan against their property. A lower interest rate is provided compared to one’s present VA mortgage loan, offers no closing costs, appraisals, payment of mortgage insurance, or the need to verify your income and assets. There is no limit as to the amount you that can borrow, and the funding fee for VA refinancing is a very small percentage of your actual loan amount.

Another type of VA mortgage loan is suitable for individuals who have equity in their homes (equity is the value of your property after any amounts of unpaid debts are deducted). Aside from having your VA loan refinanced, you can also obtain cash up to almost the entire value of your property; however, certain income and credit history criteria need to met in order to qualify for this type of VA refinancing loan. In this type of scheme, you are not required to pay for mortgage insurance each month, and thus save some money. You can contact a VA specialist who can help you determine whether you can qualify for this type of refinancing, and to find out the maximum amount of money you can obtain.

The last type of VA mortgage refinancing scheme can also provide you with a lower interest rate even if you have a low credit score. A funding fee is charged (which can be added to your VA mortgage loan amount) to insure your loan, but like other refinancing schemes, there are no closing costs and no monthly mortgage insurance payments to think about. You may also get cash close to the value of your property, aside from the loan amount that will be granted.

In considering whether to apply for VA mortgage refinancing, it is best to use a VA mortgage calculator to determine the amount of your loan, the amount of your monthly payments and your capability to repay the loan. The VA mortgage calculator, which can be found on the Internet, can also show you the amount of money you can save by refinancing your VA mortgage loan.

When you apply for VA refinancing, ensure that you compare and negotiate with different companies in order to obtain the best deal. Avoid financing companies that charge you a high fee for their service, or those requesting you to make more than one payment in a month. You should also avoid loans that offer variable interest rates, otherwise you will end up with a higher monthly amortization. Do not limit your search to local banks, as they will only sell your loan to a bank in another state.


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