The rapid mortgage interest rate increase this year has shocked the real estate market. In 2020 VA Loans were below 3%. Today we’re seeing rates over twice that. Many home buyers or refinancers have not experienced this level of VA loan rates, but there is a silver lining in the rate cloud and it shows the strength of the Veterans benefit. This could be your pot of gold.
We know of a homeowner who took advantage of this Veterans’ benefit in 2020 using his loan to finance 100% of his purchase price. His VA Loan rate is just under 3%. But now, he’s had some life-changes and is preparing his home for sale. Fortunately his real estate agent contacted us and ask about the assumability of his current mortgage loan. Our Veteran is thankful he had sought out an agent who had familiarity with VA Loans.
“Yes”, we said, “another qualified buyer, veteran or not, chooses to buy this homie she can assume the mortgage at it’s current rate”. Our home owning veteran has made about 18 payments on that loan. His principal loan amount has decreased only slightly. Our new homebuyer can purchase this home and assume the current, very low interest rate.
In this somewhat slow real estate market here comes a home for sale that has an assumable mortgage rate less than half of today’s market rates. Here comes a very appealing opportunity for another buyer. This feature is but one of the benefits VALoansMN can offer. However, as they say on TV “wait, there’s more!”.
Staying with our home-selling Veteran he must now find a house in a new location and he will face today’s VA loan rates which are considerably higher than the loan he once had. But, no worries, he’ll obtain another VA loan to purchase his new home and, if rates return to lower levels, he can take advantage of the streamlined refinance offered at VALoansMN. Using this feature here’s no need for an appraisal nor is there any income verification. As Brad at VALoansMN puts it “you marry the house but you’re only dating the mortgage”.
Don't overlook your pot of gold. Call us today and we'll show you how easy it can be.
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Brad Christensen
Mortgage Loan Originator
NMLS# 290074
612-240-9922
2523 S. Wayzata Blvd. Suite 300
Minneapolis, MN 55406
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Brad Christensen NMLS#290074 works for nationally recognized Luminate Home Loans, Inc. NMLS#150953. VALoansMN is not affiliated with the Veterans Administration or any government agency. Luminate Home Loans, Inc. NMLS# 150953 Corporate Headquarters: 2523 S. Wayzata Blvd #300,Minneapolis, MN 55405. NMLS ID #150953 http://www.nmlsconsumeraccess.org. Toll Free (800) 270-3416. This advertisement does not constitute a loan approval or a loan commitment. Loan approval and/or loan commitment is subject to final underwriting review and approval.