If you’re shopping for the best refinance rates and are VA mortgage eligible, you really should reconsider. This is especially true if your current mortgage is an FHA loan or you’re carrying private mortgage insurance on your existing home loan. Sure the bureaucracy is a pain; however, there are distinct advantages to using a VA loan when mortgage refinancing. Check out this article on hsh.com for more about the advantages of VA mortgage loans:
Today, however, it may be to your advantage to refinance to a VA mortgage if you qualify. If you have improved your credit, been self-employed long enough for your income to be counted, if your condo has obtained VA approval, or if you can get a better interest rate with VA financing, it’s time to think about making the switch.
Just because you’ve got a VA backed home loan doesn’t mean you won’t have people trying to take advantage of the fact that you’re mortgage refinancing. Lenders still try to slip junk fees past you at closing and the fees you pay actually decide how good of a deal you’re getting for your mortgage refi.
The reason fees paid for loan origination and closing costs are so important is that you’ll have to recoup these expenses from your lower payment amount before gaining any benefit from mortgage refinancing. The more you pay, the longer it’s going to take to break even.
Did you know that mortgage loan origination fees and closing costs are negotiable and vary from one lender and broker to the next? Common mortgage mistakes like not negotiating don’t just keep you from the lowest refinance rates but take cash out of your pocket unnecessarily.
You can learn more about getting the lowest refi rates for your next home loan without paying junk fees or unnecessary markup by checking out my free Underground Mortgage Videos.
My name is Rob Regehr and I’m a personal finance writer with a chip on my shoulder for banks and brokers that take advantage of my friends and neighbors.
