Question:

How about FHA/VA mortgages refinancing?

Answer:

Your payment and interest may be greatly reduced if you choose to do FHA/VA mortgages refinancing. Both FHA/VA will allow you to refinance and reduce your monthly payment without any cash expense.

When to consider FHA/VA mortgage refinancing?

With FHA you should always check if you are entitled to some kind of a refund. And if interest rates have dropped and FHA has shrunk MIP costs (mortgage insurance premium), it is time to refinance. There are always no cost options offered (well, with somewhat higher interest rate), and FHA/VA loan may be converted from ARM to FRM.

With an FHA refinance you may choose whether to roll in the loan new closing costs, or take cash out; you may be eligible to a refund of the escrow account or to a MIP refund. You may choose whether to refinance with or without appraisal.

For a VA loan refinance, it is better to approach a VA/HUD approved lender to maximize rates and options. Your new VA mortgage will replace your current VA loan and should get you better rates. However, cash out with a VA loan refinance is not possible and no other liens may be paid off. Efficiency improvements may be included up to $5000 and loan term may be reduced, if you like. Notice this: there may be no VA loan funding fees, if you get the right lender, and closing costs and discount points may be rolled into the loan.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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