That refinance fence you’re sitting on – it’s wobbling. And the low rates that have held that fence up for the past seven months are starting to warp, so if you’re waiting on rates going any lower, you better snatch up the 5.5s while they’re still here.
The reality is this – if you haven’t refinanced your home and you are sitting at a 6.5% or higher, then you have to decide now if you’re going to refinance, and you need to do it quickly.
There’s a few questions to ask yourself before you jump into refinancing, because you are going to add some principal back onto your loan, so is that worth it to you?
If you’re dropping a point of interest and saving at least $100 a month, then it could be worth your time.
Plan on staying in your home for the next 5-10 years? If so, a refinance could be worth your time.
If it only takes 2-3 years to recoup your closing costs, and you’re staying in your home for awhile, again, refinancing is definitely something you want to consider.
The benefit of refinancing into a
VA Loan is that you’re getting a either a 15 or 30 year fixed-interest loan with no pre-payment penalty. The
VA offers a 100% cash out for folks looking to take out money, or simply trying to convert a conventional mortgage into a VA Loan, or consolidate two mortgages into one. Now, if you’re looking at a 100% cash out, your house will need to appraise for what you owe on it, so you want to do some investigative work on your home’s value to help you better understand if refinancing your home is an option.
For those of you with a VA Loan already who have sat idly by, again, if you know you’re not leaving your home and 5.5% makes sense and saves you money, you can go the VA Streamline Refinance route with no appraisal and fewer closing costs than with a traditional refinance.
To determine if refinancing in your situation makes sense, call the VA Loan Professionals at
VAMortgageCenter.com at 800-405-6682.