Advantages
There are many different advantages and benefits to refinancing with a VA loan. The first of these advantages is that with a VA loan the borrower is able to borrow up to ninety percent of the refinance limit. This is much higher than if you were to refinance with a traditional lender. Another benefit that some might consider really good is that there is no PMI insurance required. This can save the borrower money every month when they go to make their monthly mortgage payment. A third advantage is that if you are able to prepay your loan there will be no prepayment penalties as with some of the traditional lenders. This can save the borrower several hundred if not thousands of dollars in fees. There are many other benefits and advantages to refinancing your mortgage with a VA bad credit loan. These are just the most popular when speaking of a VA loan.
Closing Costs
When you are refinancing with a VA loan the lender is allowed to charge closing costs that are reasonable. However there are some expenses that cannot be charged in these costs. These items are an appraisal, a credit history report, a loan origination fee, and discount points, a title search and title insurance, any recording fees, a survey and finally and state or local taxes charged to do the transfer.
VA Home Refinancing
When refinancing the VA home loan the VA offers many benefits to the veteran or active military person. First the VA will guarantee a part of the mortgage loan for the mortgage company. This is what will allow the veteran to get the loan. Basically what this means is that if you were to default on the loan the VA would pay the mortgage to the unsecured loan lender so they are not out any money.
The VA will also appraise the house. They do this to determine how much the house is worth in the housing mortgage at the time the refinance is completed. This will show a reasonable value for the house.
It also makes sure that all veterans are given the same opportunity to refinance their homes without regard to their race, color, religion, sex, handicapped or national origin.
Conclusion
As with any mortgage loan a VA loan can be confusing. It is best to research or speak with someone who is educated on this program. This will help you to be sure to get the correct advice and get the loan that you are deserved. After all you did serve the country and you deserve the good benefits.
