We have seen allot of refinance applications since the interest rate drop in December. Most applicants are trying to refinance an already low interest rate into a teaser rate seen on advertisements all over the web. The truth is, VA interest rates are hovering between 5-5.5 %. Yesterday’s rates climbed to 5.75%. To refinance a loan into this range a home owner would have a rate of 7% or higher before the cost is worth the benefit. Typically on the average home price you will want to save 1.5% on a refinance and plan to stay in the home several years. However with most military homeowner moving after just 3-4 years, we often recommend against refinancing.

Tags: refinance, VA Loans, VA Rates

This entry was posted on Tuesday, February 3rd, 2009 at 12:55 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.