Purchasing a new home is an exciting and frightening experience. Taking the risk and investing in your future can be the best thing you ever do, but with high risk also comes high reward. Luckily, national home loan interest rates are at an all-time low and buyers are able to get into new homes at great prices that would have been impossible previously. Even current homeowners are able to take advantage of the low rates and refinance their properties to save money on the remaining portion of their loans. Needless to say, now is a great time to consider real estate as a way to secure a financially bright future.
While conventional and FHA loan rates are already fantastic, things get even better for those who have served our country in the armed services. As part of the VA benefits package, veterans of the Armed Forces are entitled to certain low-rate home loans to help them provide housing for their families. These loans are available for the purchase of a new home as well as for the refinancing of an existing property.
Veterans of the US military who are interested in purchasing a new home and qualify for a VA loan are able to finance up 103% of the cost of the home, or up to $719,000, with no down payment. Some qualifying veterans may even be able to finance up to $1,094,625 is certain “high-cost” counties. While no down payment is required, rates get even lower depending on the amount paid made on a down payment, if any. These VA loans require no private mortgage insurance and are insured by the US government. Additionally, the closing fees and any associated costs can be rolled into the cost of the loan and paid off over the agreed upon term of the loan. This makes getting into a property easy and affordable, as there is no associated up-front cost.
For veterans who already have a home and a mortgage, there is the option for them to refinance their property and apply for a lowered interest rate. Paying this lower rate could save the homeowner thousands of dollars over the term of their loan. Homeowners may either refinance with a VA refinance or can apply for a cash-out refinance. A streamline refinance allows homeowners to receive a lower rate on their home loan and avoid all the hassles of a traditional refinance, such as a home appraisal. Streamlines are much quicker and cheaper and allow homeowners to start saving money right away. A cash-out refinance allows homeowners to withdraw equity from their homes to pay off other bills or financial obligations. They then can refinance their loan to include the amount they withdrew and pay it off over a longer period of time, but at a lower interest rate. Both are great options, and the best choice depends on the needs of the homeowner.
Whether or not you are a veteran of the US Armed Forces, you currently have the ability to become a homeowner, or save money on your current property, and enjoy the lowest rates in history. If you are considering any opportunity with real estate, now is the time to make the decision to improve your future and buy a home or save yourself thousands with a home loan refinance.