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You Can Benefit With Va Mortgage Rates

Filed Under (Interest Rates) by Dustin McAlister on 29-03-2010

Take advantage of VA mortgage rates if you are a military veteran looking to buy a home. The VA loan was signed into law after world war two. This bill has been helping veterans buy their first home ever since.

If you were in the military and were honorably discharged you qualify for the VA loan. Compared to the conventional loan there are many advantages.

Those who apply for a conventional home loan have to pay a down payment. This is in essence money up front for the loan usually in the amount of up to twenty percent of the loan amount.

If the price of the home is two hundred thousand dollars the borrower would have to pay up to forty thousand dollars up front in addition to closing costs and percentage points on the amount of the loan depending on the terms of the escrow agreement.

The conventional loan is subject to PMI or private mortgage insurance. PMI is an insurance policy on the loan and is taken out in favor of the lender. The amount of the loan is insured so that if the borrower defaults the lender receives from the insurance policy the amount due on the loan.

The borrower is the beneficiary on the loan but the lender makes the premium payments. The borrower can expect to pay one to two hundred dollars on each house payment depending on the amount of the loan.

The military veteran with a VA loan does not have to make a down payment. The loan is one hundred percent financing. And there are no other such loans in this economy. The government is the insurance policy in essence so the lender does not need to receive a down payment on the loan.

Not only is the down payment waived but since the government is the insurance policy on the loan the need for PMI is gone. This is one way the government rewards those who served in the military. The loan benefits veterans but also the country as a whole.

The foundation of strong county is community. A strong community is based on home ownership. Those who own homes make better citizens. The home owner has pride of ownership.

The home is also the foundation of the family. A family with a solid foundation is a strong family. A strong family means a stronger community. The country is made up of communities and the stronger the communities the stronger the country.

The VA legislation signed at the end of world war two had one major purpose; to make the nation stronger at the end of a war for freedom.

Since then the VA loan has been responsible for countless numbers of veterans being able to buy homes and raise their families. It has and continues to be one of the most effective bills in creating a strong and prosperous country.

All who served in the armed forces deserve to be rewarded for their sacrifice. This is a benefit that however helps everyone.

You need someone you can trust to handle your VA streamline refinance. Check us out today at www.MyVaRefinance.net and get a quote on VA mortgage rates today. Let us show you what superior customer service is all about!