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Compare Local VA Home Loan Rates
Author David Schneider | Dec 27,2007
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Because of the service our armed forces have provided, they may qualify for special benefits, such as a VA home loan mortgage. These loans come with lower rates than the market rate, obtained at 100 percent financing without paying private mortgage insurance.
Even though VA loans follow certain uniform guidelines, many lenders have their own criteria, as well. This can cause a slight variation in rates or the term of the mortgage. Once you are qualified, find a list of VA lenders and start shopping for the best rates. Here are a few things you should know about VA loan rates while asking questions:
Local VA Home Loan Rates -- Funding Fee
In order to receive the loan, qualified veterans must pay a funding fee. The fee is anywhere from zero to 3.3 percent of the total amount of the loan. It can be included with the mortgage so that there are no additional out-of-pocket fees to pay. Veterans pay the funding fee instead of closing costs, which usually total three to five percent of a traditional loan.
Compare Fixed-Rate VA Loans Vs. Adjustable-Rate Loans
If you are determined to get a fixed-rate loan, you’ll find that you still may be able to negotiate the rate with your VA lender. Many choose a fixed-rate in order to keep their loan payments consistent throughout the term of the mortgage.
The adjustable-rate loan is another option to consider. It is not a typical adjustable rate. VA adjustable-rate interest can only increase one percent annually. It cannot exceed a five percent increase during the mortgage term.
Streamline Refinancing and VA Home Loans
The Streamline Refinancing program allows you to refinance a current mortgage in order to get a lower rate. The best part is that there is no need to re-qualify. You can refinance for a better rate without having to provide proof of income, income documentation or recent appraisals.
The best thing to do is research the VA terms of both rates, and shop around with various VA lenders. Don’t just assume that one loan rate is better than the other, without doing your homework first. Take time to consult trusted experts. You will feel better about your loan rate decision if you conduct the research in advance. VA loans offer a guarantee, but ultimately you make the final decision about the best loan rate for you.
Because of the service our armed forces have provided, they may qualify for special benefits, such as a VA home loan mortgage. These loans come with lower rates than the market rate, obtained at 100 percent financing without paying private mortgage insurance.
Even though VA loans follow certain uniform guidelines, many lenders have their own criteria, as well. This can cause a slight variation in rates or the term of the mortgage. Once you are qualified, find a list of VA lenders and start shopping for the best rates. Here are a few things you should know about VA loan rates while asking questions:
Local VA Home Loan Rates -- Funding Fee
In order to receive the loan, qualified veterans must pay a funding fee. The fee is anywhere from zero to 3.3 percent of the total amount of the loan. It can be included with the mortgage so that there are no additional out-of-pocket fees to pay. Veterans pay the funding fee instead of closing costs, which usually total three to five percent of a traditional loan.
Compare Fixed-Rate VA Loans Vs. Adjustable-Rate Loans
If you are determined to get a fixed-rate loan, you’ll find that you still may be able to negotiate the rate with your VA lender. Many choose a fixed-rate in order to keep their loan payments consistent throughout the term of the mortgage.
The adjustable-rate loan is another option to consider. It is not a typical adjustable rate. VA adjustable-rate interest can only increase one percent annually. It cannot exceed a five percent increase during the mortgage term.
Streamline Refinancing and VA Home Loans
The Streamline Refinancing program allows you to refinance a current mortgage in order to get a lower rate. The best part is that there is no need to re-qualify. You can refinance for a better rate without having to provide proof of income, income documentation or recent appraisals.
The best thing to do is research the VA terms of both rates, and shop around with various VA lenders. Don’t just assume that one loan rate is better than the other, without doing your homework first. Take time to consult trusted experts. You will feel better about your loan rate decision if you conduct the research in advance. VA loans offer a guarantee, but ultimately you make the final decision about the best loan rate for you. |
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