With record low interest rates, the VA is urging veterans to take advantage of their Home Loan Program Benefits to refinance their home loans at considerable savings. Deputy Under Secretary for Economic Opportunity Curtis L. Coy says that since 1944, more than 20 million veterans and service members have purchased homes through the program.
“Veterans who may have already used their VA benefit to purchase a home may easily reuse the benefit to purchase another residence, or to refinance to a lower rate using an Interest Rate Reduction Refinance Loan or Streamline Refinance Loan,” Coy said. “No appraisal or credit underwriting is required.”
Veterans who used their benefit, perhaps while on active duty, to purchase a home, should compare their interest rate with current rates in their area. They can reuse their benefits to refinance their home with “no money out of pocket,” he said, because costs may be included in the loan.
If veterans have separated or retired from the military and receive disability compensation of at least 10 percent, they are exempt from a funding fee. This can reduce mortgage payments an average $200 or more. Last year, those refinancing programs saved those veterans more than $900 million in their first two years alone.
To obtain the benefits of the loan program veterans should obtain a Certificate of Eligibility online through VA’s eBenefits Web site at www.ebenefits.va.gov/ebenefits-portal/ebenefits.portal or through their lender. Coy recommends veterans seek the advice of a financial professional and to contact several lenders for quotes to determine what is in their best interest.
Additional information is available at the nearest VA regional office with Loan Guaranty staff by calling (877) 827-3702, or visiting http://www.benefits.va.gov/HOMELOANS/contact_rlc_info.asp . Veterans and active duty service members can also learn more about IRRRLs on the VA website: http://www.benefits.va.gov/HOMELOANS/irrrl.asp.