Years ago, when I heard the word, “refinancing,” my eyes glazed over and I blocked out anything that followed. It seemed like a lot of work and too confusing to deal with at the time. I never pursued the issue.
Since we purchased our current house, though, we’ve refinanced twice and are doing it again now.
With interest rates dropping again, now is a great time to see if you can keep more money in your pocket by refinancing your mortgage. Sites like military.com can be very helpful in getting information for refinancing for vets.
Right now, some people are getting their VA loans refinanced without having to pay fees at all! By dropping from an interest rate of 4.0% to one of 3.75%, you are paying 6% less each month! For instance, if you pay $3200 per month with an interest rate 4% right now, by refinancing to an interest rate of 3.75%, your new payment will be about $3100. That is an extra $100 in your pocket each month. With special deals out there for people with VA loans, it’s a no-brainer. You are saving money and it costs you nothing but time to do so. Sometimes, you even get to skip a payment between the last payment under your old mortgage institution and your first at the new institution. You could make a dent in your credit card balance, make a larger purchase you’ve been considering, or add a cushion to your nest egg.
Speaking from experience, I highly recommend pursuing this issue. Just think of all the things you could do with that money in your pocket. Refinancing is not as hard or scary as it sounds. Check it out!