VA Loans Blog

The Mortgage Rate Tale

October 12th, 2014 6:55 AM by Joan Rusco

When a neighbor told us years and years ago she had purchased her home with a mortgage rate of 6% we thought “those days are long gone”. It’s amazing how time can change your perspective.

We’ve written on these pages that VA mortgage rates are at historic lows. We are happy to report those rates remain to this day. We can also tell you it  is much to the surprise of many of the financial pundits. As we look back over the past few years we see rates are still below what my neighbor had paid for her home loan. At the time she made that claim home loans were costing borrowers over twice the 6% she was bragging about. We even refinanced our own home when rates dropped to 10% thinking it would never be lower.

When a Veteran or active duty military person comes to us today and claims they have a mortgage rate of 6% we would do everything we could to convince them they should refinance immediately and possibly save hundreds of dollars a month in interest costs on a VA home loan from VALoansMN. We can save you money even when your rate is much lower than 6%!

Now about the cost of real estate here in Minnesota, the Dakotas and Wisconsin.  The National Association of Realtors says the home price increases we saw for about four consecutive months earlier this year stopped in late summer. Their economists suggest it’s because investors with cash have pulled away. Perhaps because they’ve bought all the real estate they could afford in the past few years. While home sales were increasing this year they have now taken a pause and that’s good news for you buyers.

For buyers (and those wanting to save money by refinancing your existing loan) let’s return to that neighbor’s claim that she had a loan rate of only 6% years ago. In those days that seemed incredibly low. Today, given our historic low rates, 6% is deemed very high. Can you imagine in future years telling a neighbor who just bought their house that your rate is below 5%. We suspect they won’t believe rates could ever have been that low. Veterans, they are that low and we can’t imagine this opportunity will come again. 

Whether you contact us at VALoansMN or some other lender we cannot emphasize enough that this is a golden opportunity for home ownership due to these very, very low (historically speaking) VA Loan rates. Please take advantage by calling us today!
Posted in:General
Posted by Joan Rusco on October 12th, 2014 6:55 AM

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