Lower Mortgage Rates With The Va Home Loan Plan

By Author: Virendra Smith
Total Articles: 42
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The US Department of Veterans Affairs has a dedicated Loan Guaranty Service that helps enable veterans to keep and purchase their homes at competitive rates and plans. Today, some consider VA mortgage rates to be at their lowest in years and the VA’s other programs can help veterans take advantage of the current trends and lower their interest rate and total payments.

The Home Loan Program

The Department of Veterans Affairs helps veterans by guaranteeing their home loans through the home loan program which in effect means that the government backs-up the loan and if the borrowing veteran is suddenly unable to continue making payments for the loan, the lender can go the VA and make a claim to cover losses due to non-payment of the loan. The program creates a more attractive situation for lenders and with that comes lower VA mortgage interest rates. A VA backed mortgage is often more affordable for a veteran to maintain. The home loan program has strict requirements on eligibility ...
... but generally speaking, most of the requirements are about time served, and other than dishonorable discharge. Other people may be eligible and checking with the local VA office or qualified VA lenders are often the best way to determine if one is eligible.

Current VA Loan Rates

The current VA home mortgage loan rates are at a historically low point and can be advantageous for veterans to take advantage of. Current fixed VA loan rate for 30 year fixed rate mortgages are at 3.25% and 15 year at 3%. Hybrid ARM rates are not at 2.75% or 3.3% APR. These interest rates are at some of the lowest points they have been and veterans can take advantage of them by locking in at an interest rate by taking out a VA loan or starting a refinance of an existing home now.

The IRRRL or Streamline Refinance

The Interest Rate Reduction Refinancing Loan or IRRRL is often called the VA streamline loan that is available to veterans to lower their current interest rates for VA guaranteed loans. The IRRRL like other refinancing options can be used to pay off a high interest loan and replacing it with a low interest one leading to a smaller total payment for the borrower. Another reason to get a refinancing loan is to adjust the payment schedule to a more advantageous or convenient time frame for the borrower.

In these cases it is best to consult experts in the field of VA mortgage interest rates as well as the local VA offices to ensure a proper and accurate understanding of the processes and fees involved in taking advantage of the low rate situation.