VA refinance

VA Loan Options For Reducing Monthly Mortgage Payments

April 22, 2014

VA Loan Options For Reducing Monthly Mortgage Payments

101-logoIf you’re looking for options to reduce the amount of your VA home loan mortgage payments, there are several ways to approach the issue depending on whether or not you have already taken out the loan or not.

For example, if you have not closed the deal on your VA home loan yet, making a down payment on the mortgage can help lower the monthly mortgage bill. So can paying costs and expenses up front rather than including them into the loan amount. Were you considering rolling the VA loan funding fee into your loan? Paying that fee up front can save you money in monthly mortgage payments.

Any approved add-ons to the VA loan amount such as the VA Energy Efficient Mortgage option can potentially raise the amount of your monthly payments. It may be a good idea to sit down and do the math on including such expenses into your loan before committing to doing so.

Another way to help lower your mortgage bills is to purchase interest rate discount points as part of the loan–these reductions in interest can reduce your payments. Check the terms your lender is currently offering–know how much reduction in interest there may be as a result of purchasing discount points and for how long the reduced interest rate remains in effect.

If you already have a VA mortgage loan and need to lower your monthly payments, the most effective way to do this is to apply for a VA Streamline Refinancing Loan.

This refinancing loan has a requirement that some benefit comes to the borrower as a result of the new loan. These benefits must be lower payments, lower interest, or both. Applying for a VA Streamline Refinancing loan means there is no VA-required appraisal fee or credit check in most cases, though the lender is free to require one or both depending on circumstances.

Speak to your loan officer about your options to reduce VA mortgage payments,¬†you may be surprised to learn what your options are, whether you’re getting ready to purchase or have already closed the deal on a VA mortgage loan.

Do you have questions about VA home loans? Ask us in the comments section.

Bruce Reichstein

About Bruce Reichstein

Bruce Reichstein is an Expert on (VA) Military/Veteran Home Loan Guidelines for over 26 years. He is an experienced VA Loan Mortgage Banker who is passionate about assisting US Military Veterans utilize their Veteran Eligibility to purchase a home.

4 Comments
  1. Vincent Garcia

    I currently have a VA loan at the interest rate of 6.1% for a condo in Los Angeles Calif. I've been at this condo for seven years. I have tried to refinance for a lower rate but I have been unsuccessful because my loan is through (company name deleted)? Can the VA help me refinance? Thank You Vincent Garcia

    • Joe Wallace

      You can explore your options for applying for VA refinancing at http://www.VAloans.com which is a private company and not a government agency.

  2. Susan Wright

    Our V A home loan is severely underwater. The house was included in a B K & discharged in 2009.We have asked for a modification 10 months with no decision yet. We are not making payments. Since the B K is over 2 years, can we get another V A loan at today's home prices?

    • Joe Wallace

      That would depend on your credit and other financial qualifications established since the bankruptcy, but if you have missed payments on your record you would need to wait 12 months from the date of your last missed payment before applying.

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