If you are one of many Veterans or Military Home Owners and have an interest rate at 3.75% or higher, then please pay close attention. It could be perceived as your PATRIOTIC duty, to take advantage of the VA IRRRL or Interest Rate Reduction Refinance Loan. Never before in the history of our country have we had a Federal Reserve that has done so much to keep interest rates on VA home loans so low. On 9-13-12 The FED committed to buy an additional 40,000,000,000.00 of mortgage bonds (that is a lot!) every single month until further notice.
By purchasing these mortgage backed securities (MBS) the FED is essentially forcing interest rates on home loans to stay low. The current rate for a VA 30 yr fixed rate loan is somewhere between 3.25% to 3.75%. Both of these rates are going to allow most of our readers to see VA mortgage payment decreases of anywhere from $75-$350 a month. If you are not familiar with the VA IRRRL or VA streamline loan please keep reading our blog as you are sure to get more information.
Have you ever wondered why the FED would want to keep interest rates low for so long? Well as most home owners are aware, our country has been struggling to recover from the housing collapse and very high unemployment. Just imagine if you are saving $150 a month plus when you refinance you normally skip a payment or two, that means lots of extra money in your possession now. Well if hundreds of thousands of people refinance each month, then MILLIONS and MILLIONS of dollars will flow back into the economy. This is called Stimulus.
So if you have a VA loan and an interest rate over 4%, start looking into a refinance. The FED wants you to do it, of course our loan officers here at Low VA Rates want you to also. But, research on your own and make the decision that is best for you and GOOD LUCK.