Veterans and FHA Home Owners Waiting to Refinance Better Act Now - Interest Rates Rising

6/2/2009

Veterans and FHA home owners may have been waiting for the right time to refinance their VA or FHA loan.  However, news of the recession ending is sending rates higher again. However, the Veterans Benefits Improvement Act of 2008 and special FHA mortgage rules can significantly lower interest rates and payments for the first 5 years on a new loan.  This is a warning to home owners who have waited to take action and lower their mortgage payment

Washington, DC (PRWEB) May 29, 2009 -- Veteran Loans specialists www.lowfhaloanrates.com urge Veterans and FHA homeowners not to wait to refinance their homes.  Thirty year interest rates on government insured loans (VA and FHA) have suddenly sky rocketed.  This is due to signals that the worst may be over in the recession.  Literally millions of home owners have been waiting for rates to go lower.  They have listened to the media spin about interest rates and mortgages and are now caught wondering what to do.

The worst thing to do is to wait for the rates to drop again.  Past indicators show that waiting after a spike almost never pays off.  It is like chasing bad money with more bad money.  Homeowners who have not refinanced have put it off and now should avoid making a bad decision worse.  Instead, "Lock in and refinance now.  Don't wait for rates to drop again because they likely will not.  As the economy recovers, rates will continue to rise.  Today we are still at 75-year lows.  It is time to lock in your VA or FHA refinance," said Hailey Marie of LowFHALoanRates.com

Underwriting guidelines are also changing.  LowFHALoanRates.com is warning veterans and FHA owners alike to refinance now because of quickly changing underwriting guidelines that are plaguing the market.  In addition to changing underwriting requirements, LowFHALoanRates has issued LOCK warnings in the past at www.issueswire.com/releases/Veterans/loans/prweb2171054.htm

VA and FHA homeowners should know of one special program that will still allow them to take advantage of last week's lower rates like 4.5% or even as low as 3.75%.  Many VA and FHA home owners are unaware of a special program only offered by the Federal Government to VA and FHA borrowers.  This special program is designed for the exact scenario facing homeowners today and is known as the Hybrid Loan.

Congress and President Bush passed the Veterans Benefits Improvement Act of 2008 to prevent foreclosure and help ease the burden of military home owners along the FHA owners.  The VA/FHA hybrid loan helps home owners get a lower than normal interest rate for three to five years.  This is not a conventional Arm. "LowFHALoanRates.com wants Veterans to understand their options.  Veterans and those in active military duty should explore lower government-backed interest rates on the first years of their loan," said Marie.

Veterans should consult with lenders like Flagship Financial to lock in lower rates before they go up then take advantage of stimulus money specifically for Veterans who own homes.  Flagship Financial Branch 403 has contributed its offer of a No Lender or Broker Fee refinance to anyone that takes advantage of the hybrid loans.  Flagship is allowing borrowers who lock in and close on a hybrid loan, the option of refinancing back to a 30 yr fixed rate at any time they choose and Flagship will do it with NO POINTS*.

*see a flagship branch 403 loan officer for official written details

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