If you currently have a conventional loan, yes, you can refinance into a VA loan if you are an eligible veteran or member of the armed services.
Better yet, you may be able to save a great deal of money with a VA refinance!
Transferring from a conventional mortgage to a VA mortgage is known as a “Conventional to VA Refinance Loan,” and is a very straightforward process.
Below are some of the advantages offered by switching from a conventional mortgage to a VA mortgage:
- You may be able to lower your interest rate and your monthly payment with low VA refinance rates.
- You are not required to put any money down to get a VA loan refinance.
- Private mortgage insurance is also not required even for those borrowing more than 80% of the home’s value. Not having to pay private mortgage insurance (or PMI for short) can result in significant savings.
- You have the option of refinancing to a fixed rate mortgage to ensure that your interest rates do not fluctuate over time.
Remember, even if you can only lower your interest rate by a .5% percent you could be saving thousands of dollars over time!
Add to that the saved costs of not having to pay private mortgage insurance, and you’re truly looking at substantial savings in both the long and short run.
If you are comfortable with your current mortgage payment you could choose to pay off your loan more aggressively by selecting a shorter term for your refinance loan.
By moving from a 30 year loan term to a 20 or 15 year term you will pay off your loan years sooner, eliminating a decade or more of interest payments. In addition, interest rates for shorter term loans are often lower than 30 year term loans and will save you thousands of dollars in interest paid.
Have us run the numbers so you can see for yourself what you could save.