Fantastic news for all VA buyers! Starting October 1, 2011 the VA is lowering its funding fee rates for home mortgages! The funding fee is what the VA charges you to insure the loan. It is not an out of pocket expense at the time that you purchase, but it is added to to the total cost of the loan and does affect your monthly payment.
Currently the charge when you initially use your VA eligibility has been 2.15% of the purchase price for your first home purchase. That rate will be going down to 1.40% in October. If this is not the first time you have used your VA eligibility to purchase a home the current rate is 3.30% of the purchase price and that will be going down to 2.15% in October
So on a purchase price of $200,000 you would be saving a total of $1,500 on your VA funding fee if it was the first home purchase you had made using a VA loan, if it was a subsequent use of your VA benefit then your savings would be $2,000 on your funding fee.
With fantastic interest rates and a great selections of homes available to choose from, this makes it an even better time to buy now!!
Author:Brandi Rademacher Phone: 253-224-6663 Dated: September 23rd 2011 Views: 1,478 About Brandi: Brandi Rademacher with RE/MAX Realty South is the Professional Realtor who other Realtors come to fo...
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