VA (Veteran’s Administration) loans are for those men and women who are serving or have served in our Nation’s Armed Forces. These loans are backed by HUD (Housing and Urban Development) and offer special benefits to those who are eligible.
Parameters and Guidelines
A VA fixed-rate mortgage offers a predictable, straightforward monthly payment. The VA loan also has no mortgage insurance premium regardless of the loan to value or down payment. With the VA fixed-rate mortgages, your interest rate (and your total monthly payment of interest and principal) will remain the same for the entire term of the loan. This predictability allows homeowners to budget for the future more effectively.
30-year fixed rate
This is the most common mortgage that homebuyers compare rates to. The rate is good for 360 months (30 years) and is amortized over that time period to payoff.
15-year fixed rate
This mortgage will be due in full in 180 months. It will have an even higher payment than the 20-year term.