October 1 November 17 , 2011, the costs associated with getting a VA mortgage are going DOWN!
An overview: VA mortgages are bundled, securitized and sold in the
secondary market with the backing of the Federal Government. In order to
insure these mortgages, the government charges a type of insurance
premium, called a VA Funding Fee, which is typically added to the loan
amount (thereby financed).
Remember, too, that the VA (subject to some restrictions) will insure loans up to 100% of the purchase price for the home.
What is happening next week? On loans that
close effective November 17, that Funding Fee is being reduced. Because
it is typical that the fee is financed into the loan, the VA is
effectively lowering the monthly cost (because the loan amount is lower)
AND the amount that will be paid back when the home is sold (again,
because the loan amount is lower). It’s a win/win for the veteran.
If you have any questions about purchasing a home with a VA loan or if
you already have one and are considering a refinance of it because of
the low interest rates, reach out to your favorite mortgage professional
and explore the possibilities. There has never been a better time!
About The Author
Dean Hartman is the Regional Vice President of
Benchmark Lending and a 25 year veteran of the mortgage banking
industry. He has achieved the designation of Certified Mortgage Planning
Specialist, and also specializes in sales leadership, seminar
presenting, and team building. Check out Dean’s Facebook Page, DreamTeamTV.