Under the Making Home Affordable program by President Barack Obama, there will be plenty of homeowners who will be able to refinance at a rate which is more affordable helping then stay in their homes and at the same time have a few dollars left in their pockets. To get VA mortgage loans, it is required that your first mortgage does not exceed 105% of the market value your home currently has. For example, if your home is evaluated at $100,000, it is not possible for you to owe more than $105,000 on your existing mortgage.
VA refinancing is available to anyone who has served in the military in the U.S. It enables you to take benefit of a lower interest rate and bring down the payments you have to make each month to a more controllable amount. If you get a VA mortgage loan to refinance at just half a percent lower rate of interest, you can be sure that you will save a few thousands in dollars over the life of your VA loan.
Before getting VA mortgage loan, you need to go to a lender who will give you a good estimate that will permit to see the new rate of interest as well as the new payment amount that will have to be made every month besides other terms which you can compare to what you are currently paying. This will be helpful for homeowners to see how much he can save and decide if refinancing is the right option for him at that point in time.
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