HOW DO VA LOAN RATES DIFFER

For veterans, the dream of home ownership may not be that far away.

Getting established into your own home can be a great way to move back into civilian life, and there are excellent resources out there that help you do just that.

In particular, the U.S. provides a loan program that dates back to 1944.

The "VA Loan," as it's typically called, provides a unique process by which veterans can get home funding from a qualified lender.

These loans tend to come with lower rates and more palatable terms, and they're designed to reflect the government's commitment to people who have served.

REDUCED INTEREST RATES FOR VA LOANS

VA loan rates are subject to change, just as typical mortgage rates will, but they typically offer a discount over standard mortgage rates.

How much of a discount one gets will depend upon the person's lender and his or her own personal credit score.

The typical discount is about 15%. While a standard 30-year loan would come it at 3.35%, a standard VA30-year mortgage would come in at 3.20%.

While this critical difference might not seem like much, it can add up to thousands

of dollars in savings over the course of 30 years.

NO REQUIREMENT FOR MORTGAGE INSURANCE

Any person who has ever purchased a home can tell you that much of the cost comesnot just from the interest rate itself but from all the associated fees and requirements that come with it.

If you purchase a home without the assistance of the VA, you will be required to have private mortgage insurance.

This can drive the cost of your loan even higher.

If you do have the assistance of a VA loan, there is no requirement that you get this sort of insurance.

The government insures the loan on your behalf, allowing you to avoid these extra expenses.

Though this does not bring down your interest rate,it brings down the effective monthly cost of your home.

LOWERED DOWN PAYMENT REQUIREMENTS

Generally, the mortgage interest rate you get will depend heavily on how much money you can put down on the home.

If you put down 25%, for instance, you'll get a lower rate than if you're are able only put down 5%.

In some cases, the lender will not issue a loan unless you're able to put close to 10% down on the home.

Fortunately for people with VA loan assistance, the down payment requirements are greatly reduced.

You may be able to get a home without making a down payment.

At the very least, you will have greatly reduced requirements.

Most importantly, your interest rate will not increase because of your lower down payment. This can make it much easier to get into home ownership.

VA loans allow people returning from the military

to purchase a home with the full credit and confidenceof the federal government.

You'll be working with qualified lenders and some of the government's guarantees allow you to pay less on your rate and avoid the added costs that sometimes pump up the price of buying a home.

It's an advantage for sure, and it allows the average person to save money both up-front and over the life of a 30-year mortgage.

Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.  

For more details call 480-351-5904. Visit the site at www.valoansforvets.com

VA Loans for Vets7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com