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Mortgage Newsletter - July 2024

How Do I Refinance My VA Mortgage Loan?

Refinancing a Veterans Administration loan into another VA loan is one of the easiest types of mortgages to refinance. If you are looking to lower your interest rate, you can get into what is called an interest rate reduction refinance loan, also referred to as an IRRRL.

You can also refinance your 30-year mortgage into one with a shorter term, such as one that is 15 or 20 years in length. Your payment might increase, but with a lower interest rate, the total interest expense you will pay over the life of the new loan could be dramatically lower than if you stay with your current loan.

The VA allows you to increase your loan term in a refinance but only on a limited basis. You could go from a 15-year to a 25-year mortgage, but you would not be able to go from a 15-year loan to a 30-year loan. Generally, the new loan term cannot be longer than the original loan term plus 10 years, not to exceed 30 years plus 32 days.

The VA will check your mortgage payment history. Ideally, you will have been current on the existing loan for the last 12 months.

Another benefit that you could enjoy from refinancing into another VA mortgage, as opposed to a different type of loan, is a low interest rate. VA mortgage interest rates are typically .25% to .42% lower than other loans.

What Goes Into Determining House Prices in a Competitive Market?

To assure a speedy sale of a home in a competitive real estate market, researching recently sold comparable properties will help establish the listing price. A price can also be determined by obtaining a professional appraisal.

The price can be impacted by the condition of a property. Having a home inspection will help define what repairs or upgrades a home needs in order to maximize its value. Adjusting its price may be needed if the property needs to be sold “as is.”

It is important to evaluate the competition and compare amenities, condition and pricing to better arrive at a viable market price. A real estate agent is a valuable source in providing the sales information and insight required to price a property competitively. If a home does not sell in a timely fashion, then a pricing strategy adjustment is in order.

Keeping emotions under control will help keep the pricing based on data and not on perceived sentimental value.

Is There a Best Time to Sell a House?

In most areas of the country, selling a home quickly best occurs if it is put on the market in late spring or early summer. Houses that are positioned to sell faster will usually sell for higher prices. At this time of year, the weather is conducive for agents to have well-attended open houses, resulting in maximum exposure. 

The best rule of thumb is to list a home during the time of year when it can be best enjoyed. Homes located in the desert and tropical snowbird destinations will sell more quickly from late fall to mid-spring. Summertime marketing will produce fewer buyers and likely result in lower selling prices.

When a house is listed during the high demand season for its location, a seller can anticipate receiving more offers. Better curb appeal during the season leads to stronger offers. As the peak season wanes, properties coming on the market may fall prey to buyers seeking more concessions, as they are aware that the best-selling season is about to end.

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This newsletter and any information contained herein are intended for general informational purposes only and should not be construed as legal, financial or medical advice. The publisher takes great efforts to ensure the accuracy of information contained in this newsletter. However, we will not be responsible at any time for any errors or omissions or any damages, howsoever caused, that result from its use. Seek competent professional advice and/or legal counsel with respect to any matter discussed or published in this newsletter.