Most military families and veteran homeowners currently find themselves in a situation where making ends meet each month is tougher than ever.
The tail end of the year 2007 introduced to most of us one of the toughest economic times in history. Due to the financial market meltdown, unregulated mortgage practices, and a handful of other issues, our once robust and stable free market found itself in disarray. Four years into your personal finances became tight or perhaps your income you were able to quickly access instant equity from your home.
Many American homeowners, including veterans and VA homeowners were using their homes like they were ATM machines.
Using your home as an ATM or quickly accessing cash or equity from your house is no longer possible for the majority of US homeowners. After the market collapse of 2007 in 2008 home prices have fallen dramatically and many homeowners find themselves unable to make ends meet. Prior to the market collapse mortgage companies and lenders across the nation were knocking down the doors to find anyone interested in cashing out their home equity to pay off their bills or to even just get a big chunk of change in the bank didn’t care what you would do with it.
I don’t mean to sound like a downer, but the truth is it is going to be years until most homeowners are able to use their home or a mortgage as a way to find short term financial assistance. There is one very big exception to this prior statement. If you have served in the United States military or Armed Forces or are currently serving you may be eligible for one of the best loan options available today — the VA loan.
In 1944 the VA home loan program was conceived as part of the servicemen’s readjustment act. Since this time the Department of Veterans Affairs along with some of the Nation’s leading banks and mortgage companies has been assisting eligible veterans and active-duty military not only reach the American dream of homeownership, but also access the value of their home through easy-to-qualify-for and unique loan programs.
If you currently have a VA home loan on your property and you feel like you are having tough times making ends meet than the VA streamline refinance is the answer to your problem. Perhaps now more than ever, more and more veterans are looking towards the VA streamline refinance as their way out of financial hardship.
The VA streamline refinance allows eligible veterans to instantly lower their interest rate in their monthly mortgage payment. There is not a single loan in the marketplace, including an FHA loan that allows the homeowner to refinance without an appraisal. In addition to lowering your interest rate and your monthly mortgage payment the VA streamline refinance is a great way to receive temporary Greenleaf from your monthly mortgage payments completely. It is possible through a VA streamline refinance to receive a reprieve for up to two months on your monthly mortgage payment. Another way in which veterans can gain temporary financial relief is by getting a cash refund of their current escrow.
The following is an example of how someone with roughly a $200,000 mortgage could benefit from a VA streamline refinance. The following example is an assumption, but these same figures will hold true for most people trying to streamline their VA loan.
- Someone who has a $200,000 VA mortgage with an interest rate of 6.5% would be paying roughly $1500 a month for their mortgage payment.
- Through a VA streamline refinance this VA homeowner could refinance with a streamline to a new rate of 3.75% and save $340 a month.
- As mentioned this veteran would not need to make to mortgage payments and the amount of $1500 per payment which puts another $3000 in his or her pocket today.
- Assuming there is roughly a $1400-$1500 escrow balance this the same veteran could see as much as another $1400 or $1500 in the form of an escrow refund check.
- In summary that is roughly $4500 in immediate financial relief in addition to $4080 a year in mortgage payment savings.
If you’ve been sitting on the fence trying to determine whether or not a streamline refinance is right for you please make a decision today in contact and approved VA lender in your area so that you can receive a much-needed and well- deserved financial relief. Those that have served this country in the military receive special benefits that civilians are not able to receive.
If there’s any group of US citizens that deserve a quick and easy refinance like the streamline it is America’s bravest, our veterans and active duty military.
