Well, it’s official, we’re in a rising interest rate environment, and that means if you’ve been holding out on refinancing, now may be the time to take advantage of these historically low interest rates.
While interest rates are climbing and are expected to continue to climb for some time, there is good news for veterans.
VA home loans typically carry lower interest rates than conventional mortgages, so with rates rising, it’s not too late to refinance.
What is a rising rate environment?
You’ve heard the old saying, “what goes up, must come down.” But when it comes to interest rates, the opposite is true: what goes down will go back up.
Since the collapse of the U.S. housing marketing during the Great Recession of 2008, mortgage interest rates have hovered at record lows.
Now, with the housing market and the U.S. economy back on solid ground, interest rates are going up.
Interest rates and veterans
Interest rates on VA home loans, on average, are about a quarter of a point below conventional and FHA home loans. The average VA home loan interest rate was 4.1 percent in January 2018 compared to 4.37 percent for convention home loans, according to Ellie Mae.
Not only does a VA home loan usually carry a lower interest rate, loans backed by the U.S. Department of Veteran Affairs also do not require mortgage insurance, which can save borrowers hundreds of dollars a month.
So, now what?
In order to take advantage of today’s low interest rates before they are gone, contact us today at 888-320-7888. Our loan officers are experts on VA loans and know how to save you money. Call us today for a free consultation. It’s not too late to save money on your home loan.