Wednesday, June 23, 2010 - Article by: MadisonMortgageGuys - MadsonMortgage -
Existing VA Home Loans Take Advantage of Lower Rates Many people are aware that the Veteran's Administration (VA) offers attractive financing terms for our veterans. However, many veterans do not know that they can take advantage of lower mortgage rates with relative ease.
The VA offers a program called the IRRRL or the Interest Rate Reduction Refinance Loan. Any veteran that currently has a VA mortgage can refinance without a new appraisal or meeting the standard refinance guidelines. The credit report used for this process is a mortgage only credit report that shows the mortgage payment history and credit scores.
The goal of this program is to show a clear benefit for the homeowner after the refinance is complete. In order to prove a benefit the rate must be lower, or the loan term is shortened, or the veteran is converting from an adjustable rate loan to a fixed rate loan. Other highlights of the IRRL:
This is really a wonderful benefit. For example, on a $225,000 mortgage, a reduction in interest rate by just 2% can mean a payment that is $250 lower! Any veteran that has an existing VA loan should at least talk to their lender to find out how today's rates compare to their existing rate. It could mean a substantial benefit to them with a very easy approval process.
Your local Wisconsin, Illinois, Minnesota and Florida mortgage banker:
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