Showing posts from May, 2016
When Is a Good Time to Refinance My VA Loan? When using a VA loan to buy and finance a primary residence there may be another time down the road where the original loan should be replaced and refinanced with a new mortgage. A refinance is indeed a brand new loan and whether the veteran decides to refinance to a lower rate, change the loan term or switch to an adjustable, there are ways to tell when refinancing a VA loan is a good idea.

The most common reason to refinance a VA loan is when mortgage rates fall lower than what is on the current note. Mortgage rates rise and fall over time and if someone has a VA loan with say an interest rate of 5.00% and rates fall to say 4.00% a refinance might be a good idea. But pay less attention to the rate and more on what the rate actually represents- your monthly payment. When thinking about refinancing a VA loan compare the current monthly payment with the prospective one. Take the difference between the two payments and divide that amount into…