18 January 2015

Mortgage Refinance Rates For VA Home Loans

By Vallorian 18 January , , Leave a Comment

Mortgage Refinance Rates For VA Home Loans

Thousands of veterans and other qualified citizens have taken advantage of the US Department of Veterans Affairs Home Loan Program to access sustainable mortgage loans for their homes. However, because of various reasons like fluctuations in the economy or the housing and lending market in general, it might be advantageous for these individuals to refinance their loans. As part of the Home Loan Program the VA offers a refinancing option that gives veterans access to advantageous VA mortgage rates.
The VA Refinancing Program
In order to refinance VA mortgage rates a veteran may apply for an IRRRL or the Interest Rate Reduction Refinancing Loan. This loan, also known to many as a VA streamline loan or a VA to VA loan, is especially designed to let veterans take advantage of better interest rate while still being backed by the government through the VA. Aside from moving to a loan with a better interest rate, the IRRRL can also be used to refinance from an adjustable rate mortgage to a fixed rate mortgage.
Advantage of VA Refinancing
The advantages of taking a VA home loan are still effective for the refinancing option offered under the program. The guarantee the government provides for the loans make it more attractive to lenders and as such creates a more competitive market that leads to lower mortgage refinance rates and other expenditures. Also, support programs from the VA can help veterans that have difficulty paying their loans. Finally, the IRRRL loan can be taken out without immediate expenses from the borrower by including all costs in the loan. This makes it possible for veterans to refinance their loans as soon as possible even when they have no immediate funds to spend on the process.
Procedure for a VA Refinance
As with a regular VA home loan, eligibility for the home loan program must be established. But, because the loan to be refinanced is already a VA loan, the lender can process this step thorough an email confirmation procedure for faster processing. The borrower has the freedom to choose the lender that will process the IRRRL; however lenders are not required to process a loan. This freedom ensures that the veteran is not locked to a lender he or she does not like and creates better chances for finding better VA mortgage rates, payment schemes, and other offers for the veteran.
The refinancing options of the US Department of Veterans Affairs' Home Loan Program is a great tool that can be used by veterans to create a better, more sustainable mortgage scheme for the home they built or purchased with a VA home loan. Consult a VA loan professional or the local VA office for more details and other relevant questions about mortgage refinance rates.
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