If you are thinking of refinancing rather than purchasing a new home, then it is important to compare your current interest rates to the rates currently being offered in the market. Are you paying more then the market rates? If not, then good. If yes, next you have to consider how long you plan to stay in your current home. If you plan on moving in the next six months, it may not be worth while to refinance with a VA Loan. While it is one of the least expensive refinancing options for those who qualify, it still has some up front costs. The savings you make in your monthly payments may just be too little to justify the loan if you plan to make a home change in the short term. If you plan on staying in your current home for a long time, then definitely seek more advantageous rates when you can. Even small savings per month add up to big dollars over the long term.
Purchasing a Home with a VA Loan
If you are purchasing your home, including your first home, with a VA Loan, then it is important to seek out and receive a pre-approval letter for your VA home financing. You may contact ARAMCO for that help or any other real estate broker or lender. Your pre-qualification gives a general idea of the extent of financing and on what terms an particular borrower may qualify based on income and debt to income ratio. Most listing agents won’t connect potential buyers with properties without a pre-approval letter these days. It is short hand for what kind of housing market is right for your circumstances. It usually works that an automated underwriter makes a determination based on income, approved up to a pre-set debt to income ratio.
There are no restrictions on what you may use the proceeds from a VA Loan to do. While a VA Loan is always a lien against your home, one may use that line of credit how one wishes. You can purchase a new home without any money down, or refinance your existing home at better than market rates. Many Veterans consider a VA Loan in order to consolidate their debt into a more manageable terms and rates. Remember that qualified Veterans can get a VA Home Loan for up to 100% of the total home value. Freddie Mac and Fannie Mae, on the other hand, will not allow for loans above 75% of a home’s value. That 25% can be a big difference to the amount of cash available to you. If your home is worth $400,000, for example, then the difference between a qualified veteran getting a VA Loan versus a non-VA Loan may be up to $100,000.
Is a VA Home Loan right for you and your loved ones? Call ARAMCO Mortgage toll free at 1 (877) 700-0942 or continue exploring www.ARAMCO.biz in order to find out.