VA Refinance Rates

The Veterans Association provides many benefits to military veterans and retired military members. Small business loans and VA home loans are among the most recognized benefits the VA provides. In fact, VA benefits like small business loans and home loans have better interest rates than traditional loans. VA refinance rates are a better choice for veterans because they allow veterans to take advantage of the lower interest rates that the VA provides. The VA provides lower refinance rates because the low is actually backed by the U.S. Government. Since the loans backed by the government, the amount of risk that a borrower may impose on the lender is voided.

Not only are VA refinance rates typically lower, they also provide other benefits like requiring no mortgage insurance. Veterans who refinance their home mortgage with a VA refinancing loan will pay a lower interest on the loan, plus save money on not being required to have a mortgage insurance policy on the loan. Veterans who take advantage of this type of refinancing that is offered by the Veterans Association will save significantly on their monthly payments. One key aspect that Veterans should be aware of when refinancing their loan with a VA loan, is the amount interest the Federal Reserve Bank is currently holding.

Right now is the best time to use a VA refinance rate because of the record low interest rates that the Federal Reserve Bank is providing. Not only do Veterans have the choice to refinance their home loan for a lower interest rate, they also can use a VA loan to borrow against their equity. Home equity loans that are used with VA loans will have a lower interest rate as well. There are two major types of VA refinancing loans that Veterans have access to.

VA streamline refinance loans and the VA cash out refinance loans are the 2 major types of loans that Veterans have access to. The streamline refinance loan allows the borrower to complete the refinancing process without any cash out of pocket expenses. This means that not only do Veterans save on interest they also save on the closing costs that are usually associated with refinancing a mortgage or obtaining an equity loan. The cash out refinance loan allows the borrower to borrow up to 90 percent of their equity in their home. Other traditional home equity loans may not allow the borrower to use up to 90 percent of their equity, depending on the lender.

The credit score of a borrower that uses a VA refinance loan has no minimum, while other lenders may require the borrower to have at least a credit score of 620 or higher. Lower interest rates can be achieved with a VA loan for someone who has bad credit, as long as the borrower is a Veteran. To qualify for a VA refinance loan to take advantage of the interest rates, the borrower must have been on active duty for at least 181 days during peacetime, or 01 days during war time.

Veterans can take advantage of lower interest rates regardless of their credit score. Now is the time to take advantage of VA refinance rates before the Federal Reserve Bank raises interest rates once again. Veterans can get a free quote online, and there is plenty of information about the process the Veteran must go through to take advantage of lower rates. The economy is struggling and monthly payments are getting tighter. In order to survive the current state of the economy, individuals must do everything in their power to lower their monthly payments on home loans, business loans, etc.