FHA Loan

With home values still declining in the Bay Area many homeowners cannot take advantage of today’s low rates on a home mortgage loan refinance. Values in the Bay Area are still declining and we see appraisal issues quite often when refinancing properties in San Francisco, Oakland and Alameda.

If you are an eligible veteran or member of the armed forces and currently have a conventional loan, then yes, you can refinance into a VA loan! In fact, we are working with a client here in Alameda, CA doing exactly this type of refinance, and the great news is he will be saving $600 per month!

Transferring from a conventional mortgage to a VA mortgage is known as a “Conventional to VA Refinance Loan,” and is a very straightforward process.

Here are some of the advantages offered by switching from a conventional mortgage to a VA mortgage:

•You may be able to lower your interest rate and your monthly payment with low VA refinance rates.

•You are not required to put any money down to get a VA loan refinance.

•Private mortgage insurance is also not required even for those borrowing more than 80% of the home’s value. Not having to pay private mortgage insurance (or PMI for short) can result in significant savings.

•You have the option of refinancing to a fixed rate mortgage to ensure that your interest rates do not fluctuate over time.

Remember, even if you can only lower your interest rate by a .5% percent you could be saving thousands of dollars over time!

Add to that the saved costs of not having to pay private mortgage insurance, and you’re truly looking at substantial savings in both the long and short run.

If you are comfortable with your current mortgage payment you could choose to pay off your loan more aggressively by selecting a shorter term for your refinance loan.

By moving from a 30 year loan term to a 20 or 15 year term you will pay off your loan years sooner, eliminating a decade or more of interest payments. In addition, interest rates for shorter term loans are often lower than 30 year term loans and will save you thousands of dollars in interest paid.

As always, if you or someone you know is looking to explore their options with VA financing feel free to contact us, The Werdmuller Group. We are here to help and we love serving those who serve.

Other VA Posts You May be Interested in:

VA Mortgage Loans in Alameda, CA- a Piece of Island History

VA Interest Rate Reduction Loan

VA Loan Requirements and Eligibility in Alameda, CA

Approved Property Types and Loan Limits for VA Loans