VA Loans Blog

I already have a great rate, should I refinance?

May 13th, 2009 12:58 PM by Joan Rusco


You hear about record low mortgage rates but that’s what they were saying a few years ago when you refinanced. Is it worthwhile for you to consider refinancing again? Maybe your current rate is 6% and today’s rates are only a half a percent less. There are considerations beyond the dollars and cents. Yes, you would save a few thousand dollars over a period of a few years if you lowered your rate (even considering the cost of the refinance). A major consideration for any Veteran should be one of the great features of loans only available to Veterans.

Think Assumable Home Loan: Assumable home loans are those loans that can be passed from one home buyer to the next. There are only two programs offering these loans today and one of them is the VA guaranteed home loan. Assumable loans were much in vogue in the 1970’s and 80’s when home mortgage rates reached upwards to 18%. At the time there were many mortgages that were assumable. Imagine being a home owner selling your property with an assumable loan of 6% when the going rate on a mortgage was 18%. Do you think that would make your home easier to sell? Absolutely! Well, all of those loan programs went away except for the government guaranteed loans.

As you consider whether or not it’s worthwhile for you to refinance your current conventional (fixed or adjustable rate) mortgage into a VA loan think about this: do you think mortgage rates might go up? If so, do you think you may want to sell your home at sometime in the future? A VA Assumable mortgage may make your home the most saleable property in town! If rates reach back near 18% your home may be the only home that could sell. All it would take is one qualified Veteran to come along with a desire to be a homeowner. So as you consider refinancing (or buying) a home, Veterans can look at benefits that go way beyond our current great rates.

Posted in:General
Posted by Joan Rusco on May 13th, 2009 12:58 PM


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