Streamline refinancing can be a smart money-saving strategy, especially for military homeowners who experience property value loss.
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How Military Homeowners Save Money With Mortgage Refinancing

How Military Homeowners Save Money With Mortgage Refinancing

Streamline refinancing, the VA Interest Rate Reduction Refinancing Loan program which allows you to refinance an existing VA mortgage to a lower interest rate, can be a smart money-saving strategy, especially for military homeowners who experience property value loss.

Other military service members who have a lot of home equity take advantage of a cash-out refinance to gain cash-access to that equity in their homes, built up over many years of rising property values. Some use that cash to pay down higher-interest revolving debt or to pay for unexpected financial emergencies.

Lower mortgage interest rates always create a strong incentive for military borrowers to refinance. Refinancing is especially attractive for veterans who want to switch from a conventional mortgage to a low interest VA mortgage, which traditionally offers the lowest interest and highest financial benefits for qualified veterans.


According to First American Core Logic, one-quarter of all mortgage borrowers were faced with home mortgages higher than the value of their homes, by 2010. At the same time, lenders were hesitant to offer home loans in amounts higher than the standard 80 percent value of the home.

When economic conditions cause a combination of inflated mortgages, devalued homes, and tighter mortgage lending practices, borrowers who choose to refinance for a lower interest rate often are forced to refinance to smaller mortgage amounts. If you are military, these same economic conditions could create the best time to consider switching from a conventional fixed or adjustable rate ARM to a more stable fixed rate VA home loan. If you have a VA Home Loan and find yourself having difficulty meeting mortgage payments, the VA offers services to help guide you through your financial stress and prevent foreclosure on your home.


According to Freddie Mac, half of all borrowers who refinanced during the first quarter of 2010 cut almost a full percentage point from their mortgage interest rate. A reduction of one point of more on your mortgage interest rate can represent a significant savings in your monthly mortgage payments, as well as over the life of a 30-year mortgage.

According to a Freddie Mac 2010 Refinance Report, three-quarters of borrowers who refinanced their home mortgage reduced their loan balance as a result, or at the very least fixed their loan balance at a stable interest rate. In the first quarter of 2010, conventional home mortgage interest rates hovered around five percent with only minor rises and falls. By summer 2010, predictions had interest rates falling as low as 4.5% before bottoming out.

Interest rates fluctuate but one thing is certain: a VA Home Loan always provides the lowest interest mortgages and the highest financial benefits including no downpayment on the home of your dreams. Find out if you qualify for a VA Mortgage today.

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