August 1st, 2019 8:54 AM by Joan Rusco
Truth be told, we, nor anyone else, could have predicted V.A. loan rates would be this low for this long. Several years ago VALoansMN blogs were urging you to take advantage of these historic low V.A. loan rates because they would soon go away. We even had a realtor urging a client to buy a house now because rates were going up. Now look where we’re at!
For those buying a first home with a V.A. loan from VALoansMN and Brad Christensen a little loan history may be in order. Today’s rates in or below the 4% range are, by historic standards, extremely low. There was a time not that many years ago when homeowners were rushing to refinance their mortgage loans because rates had dropped to 10%. These same homeowners may have neighbors who had mortgage rates in the 6% range and thought “those days are long gone”. Now look where we’re at!
Veterans and active duty military are being given a financial gift by the mortgage market. A $250,000 house financed with a V.A. loan would have cost about $1,500 a month back in the days when rates were at 6% or almost $2,200 when rates “dropped” to 10% as we described in the previous paragraph. Today that $250,000 mortgage will cost you less than $1,200 a month. That is the gift the mortgage market is bestowing on you. Buy more house for less money today than in decades past. Look where we’re at!
Reading this you should have a sense as to where we’re at so the question now is “where are we going?”. We told you of a realtor telling a client to buy now because V.A. loan rates are going up. We spoke with that realtor and urged him not to use such language with any of our clients. He may have been right, mortgage rates might have been on the rise but we felt it was a sales pressure tactic to get someone to buy. In fact, rates didn’t go up and in the year or so since that experience rates for a V.A. loan in Minnesota and surrounding states have gone down.
The moral of our story from VALoansMn is: no one knows the future of mortgage rates. We can guesstimate where V.A. loan rates might be headed but it is only a guess. We know for certain where they are today and we urge you, if you’re thinking about buying or refinancing a home, call Brad today and let him give you the great news about our historically low V.A. loan rates that can save you thousands of dollars when you buy or refinance a loan using your V.A. benefit.