VA Loan Interest Rates and Best VA Loan Rates

VA loan interest rates for mortgages are the same as conventional mortgage lenders because the VA merely guarantees a portion of the approved note to the lender and does not actually lend money to the buyer. The eligible veteran must go to a bank or mortgage company for the money to buy a home. This guaranty gives the veteran favorable financing terms because the lender is protected from loss. Whatever the best terms happen to be on the date the transaction takes place is what will be allowed, so these are the best VA loan interest rates.

Obtaining a mortgage guaranteed by the Veterans Administration is not complicated. The buyer signs a purchase contract conditioned on approval of a VA guaranteed package. Then he presents his Certificate of Eligibility to the lender he has chosen, and the lender will get an appraisal and credit report, then determine the value based on the appraisal. When all this is done, the loan can be approved. At closing, an attorney will be present to explain all the terms of the agreement and payments, along with determining what the interest rates are on that date.

There is no maximum VA mortgage, but lenders generally will limit a veteran's loan to $359,650. A veteran's basic entitlement is $36,000, and lenders will usually allow up to four times the basic entitlement without a down payment as long as the property appraises for the asking price and the applicant proves financially responsible. VA loan interest rates are determined by the same factors as conventional loans: A credit check is made, and employment history considered before approval is granted. If a buyer believes the VA loan interest rates proposed by a lender is too high, he has the option of contacting the VA, and if they agree, they will negotiate with the lender for the best VA loan interest rates possible.

When conventional interest rates are low, the best VA loan interest rates are available too. It is in any buyer's best interest to watch the market, and buy when the lowest rates are available. Mortgage insurance is usually one of the factors in the closing costs for a home purchase, but when it is guaranteed by the Veteran's Administration, it is not necessary to buy another policy, so that cost is eliminated. If a veteran wishes to contract for his purchase without paying closing costs, the loan amount can be increased enough to cover those costs, and the VA will approve that increase in deference to the veteran. Another feature with these loans is that there are no penalties for prepayment.

Paying points up front (a point is 1% of the total mortgage) will ensure the best interest rates, if the buyer has cash to apply. There are some special features that accompany the granting of the best VA loan interest rates. There is a funding fee charged by the Veterans Administration, and if a down payment of at least five percent is made, that funding fee can be financed (as opposed to being included in closing costs). Also, veterans receiving compensation for injuries are exempt from paying that fee. The department will also offer assistance to borrowers in default due to temporary financial difficulties. Modern life requires most of us to be in debt for some things (house, car, etc.) because we cannot pay cash for such large items, but the advice offered in scripture says we should try not to be in debt. "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law." (Romans 13:8)

It is important for applicants to understand that there are some things the Veterans Administration does not do: It does not guarantee the home is free of defects; cannot compel the home builder to correct construction defects if you are building a home (although it can suspend a builder from further participation in the home loan program); cannot guarantee that the buyer is making a good investment; and does not provide legal services. Fortunately, those negatives are not deterrents to the loan applicant trying to get the best VA loan interest rates.

For the veteran who is currently a homeowner and wants to refinance for a lower interest rate, assistance from the Loan Program is available through a program called Streamline Refinance. There is little or no out-of-pocket expense to the homeowner for this because the documentation is almost eliminated. Unlike conventional refinancing, there is no appraisal required, no credit underwriting, qualifying debt ratios, credit check, or income verification. Closing costs can either be covered by the lender or roll the closing costs into the new contract. Again, there are some qualifications: No assumptions are allowed under this program; the veteran cannot receive any cash back; mortgage payments must have been paid on time over the previous twelve months; any other liens must be subordinated to the VA note.

There are mortgage brokers online that will aid in finding the lowest VA loan interest rates for an applicant, and that may be the best way to determine what the interest rates are, thus enabling a buyer to find the best possible deal. Right now, they stand at somewhere between 6% and 7-1/4% for most mortgages, but if the borrower has a poor credit history it could run as high as 9% or 10%.

IRA Interest Rates

IRA interest rates, the engine that drives the hopes and dreams of millions of soon to reach retirement age Baby Boomers have several factors that move their numbers up and down the ladder. For many investors, the individual retirement account is one of several legs in the retirement stool paradigm that is endorsed by financial experts. The first leg in this all too famous analogy is made up of a person's social security that has been carved out of years putting money in a seemingly inequitable system, but could mean the difference between survival and welfare for some. The second leg is a company pension plan or 410(K) and the final leg is one's own IRA plan that has also been grown over the years through faithful saving and investing. Through these many years, the size of one's IRA nest egg account will have been dictated by IRA rates that often blow in the wind at the whim of market conditions.

Individual retirement accounts are divided into two different types, which include the traditional from and the Roth IRA. The traditional form allows a person to save money without paying taxes until withdrawal. The Roth IRA uses money a person has already paid taxes on and places it in the plan to grow. When the money is withdrawn, it is tax free to the owner. In both cases, these funds provide valuable resources for each investor when they face retirement age. The IRA interest rates for each of these types will depend on what kind of funds into which each was invested. For Christians who haven't been able to save because of hard times, these words of Jesus bring tremendous comfort and they can comfort anyone who has trusted Jesus as Lord and Savior. "Take no thought saying what shall we eat or what shall we drink or wherewithal shall we be clothed? But seek first the kingdom of God and his righteousness; and all these things shall be added unto you." (Matthew 6: 31, 33)

The investment funds that offer the least amount of risk but also the least amount of return in market boom times are certificates of deposit. These are usually offered by banks and the rates are dependent upon the interest rates at the time of inception. The CD rates are typically a little higher than the advertised passbook rates. In exchange for boom time stock market profits, the banks offer safety from suddenly plunging values with a steady anticipation of rock solid IRA interest rates. When the CD matures, usually from six months to five years, the owner of the retirement account will have to decide next where to put his money. Usually there is a window of about fifteen days for decision making. Should the owner not notify the bank, the money will return to another CD for the same amount of time.

The next investment that certainly affects IRA interest rates are mutual funds, a favorite hangout for many pre-retirement investors. Mutual funds, usually a bundle of many stocks that are overseen by a fund manager, can be a good source of growth fund opportunities in good economic times, and can tank quite dramatically in not so terrific periods. Each mutual fund has a specific goal: a fixed income fund, which would be a highest yield, lowest risk approach would be appropriate for those nearing retirement years, and a long term growth strategy which would try and beat such indexes as the S&P 500 each year, would be for younger investors. IN either case, IRA interest rates will be contingent on fund performance.

Financial experts always recommend that retirement investments be diversified. Putting all of one's nest eggs funds in one plan is a recipe for disaster. By diversifying, an investor may be hurt in one type of investment, but actually profit in another. For example, in times of difficulty with the financial market markets, the bond market flourishes. Having purchased a percentage of one's portfolio with municipal bonds when their interest bearing potentials were high, they become very attractive to buy when bank interest rates go down. And when interest rate rise, low yielding bonds can be sold for profit and the resulting IRA interest rates in the bond section of a portfolio will fluctuate with market conditions.

In the traditional IRA interest rates discussion, the bottom lines comes down to high risk and low risk, fixed rates and variable and invariably, a person cannot have low risk and high interest unless there 1970's return where 10% interest or higher rates certain safe money investments were run of the mill for a short time. In other words, a CD paying twelve or fourteen percent for five or ten years during stock market declined periods would be phenomenal; safe and highly profitable is a rare find. So a person must truly decide how much of a risk tolerance he or she has in order to choose to some degree what kinds of IRA interest rates are possible. When one is younger, there is always to temptation to think that retirement is a long way off, yet for the more seasoned worker approaching those days of decision about resigning and moving on, the reaction is always a wonder about where the time went. The lesson is to always start early and save diligently knowing that in the end, our lives are in God's hands and not in our stock broker.





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