If you’re contemplating your mortgage refinance options and served in the United States Military, don’t overlook your VA Mortgage eligibility, especially if you’re paying on an FHA home loan. One of the main advantages of a VA home loan is that you don’t pay for mortgage insurance; this added cost is downside of any FHA loan. Here are several mortgage refinancing tips to help you avoid paying too much for your next home loan taking advantage of your VA home loan eligibility from MortgageLoan.com:
If you’re a qualifying veteran or service member, a VA mortgage can be one of the best deals going. But is it always the best way to buy a home if other options are available? VA mortgages offer a lot of benefits, including being one of the few ways you can still buy a home with no down payment. However, there are certain situations where you may be better off going with a different option, such as an FHA mortgage or a conventional loan backed by Fannie Mae or Freddie Mac.
The only downside to a mortgage refinance loan from the VA is that you’ll have to pay the upfront fee on top of any closing costs. This fee can add as much as 2.8 percent to your out-of-pocket expenses which is significant considering lenders are piling on junk fees to make up for historically low-interest rates. The fees that you pay closing on your new home loan when refinancing make or break your benefit from lower mortgage refinance rates.
The more you pay at closing, including lender junk fees, the longer it’s going to take to break even recouping your out-of-pocket expenses. Paying lender junk fees or overpaying your loan origination fee can make it difficult if not impossible to break even.
You can learn more about getting today’s best mortgage refinance rates without paying unnecessary fees or markup by checking out my free Underground Mortgage Videos.