Benefits like rate match guarantee, Military Choice program for veterans who have exhausted their VA loan benefit, and free rate lock are just a few of the reasons why NFCU is the best mortgage refinance company for veterans.
A $250,000 VA loan refinanced to 15 years at 2
One of the top VA loan lenders, Navy Federal Credit Union (NFCU), can do so much more for veterans who want to refinance their mortgage than simply offering the VA loan program. With programs like Military Choice, rate match guarantee, and rate lock, Navy Federal is our favorite choice for veterans.
Their Military Choice program provides similar rates and terms to the VA loan program for those who have used their VA loan benefit. Rate lock keeps your rate the same during the application if rates rise. You have 60 days to relock if rates fall at the lower rate.
Their VA loans carry interest rates as low as 2.250%, APRs as low as 2.718%, with 10- to 30-year terms. These rates require a 1% loan origination fee, but that can be waived for a 0.25% increase in interest rate if you choose. 250% interest and 2.718% APR will have a monthly principal and interest payment of $1,637.
Their Military Choice program has interest rates as low as 4%, APRs as low as 4.276%, and 16- to 30-year terms. While not as low as the VA loan, this is a very competitive refinance program for veterans who have exhausted their VA loan option.
You need to be a Navy Federal Credit Union member to qualify for their refinance programs. You can qualify to join NFCU if you fall into one of these categories:
- Active duty, retired, or veterans of any branch of the U.S. armed forces
- Families and members of those individuals’ households (includes grandparents and grandchildren)
- Department of Defense employees, contractors, retirees, and annuitants
NFCU performs thorough underwriting, so they consider everything from earnings and debt to loan repayment history. While they do not have a set credit minimum, the lowest mortgage interest rates are reserved for applicants with a credit score of at least 740 and a debt-to-income ratio (DTI) below 36%.
Most home types qualify, including mobile and manufactured homes, but the home must be permanently fixed to the land, with wheels, axles, and hitches removed, and permanent water and sewer connections.
Customer service options include 24/7 phone support, online chat and social media, secure email, and in-person at a branch. NFCU lends in 50 states and has branches worldwide wherever there is a military installation.
Navy Federal Credit Union was formed in 1933 and has grown to 10 million member-owners. The not-for-profit company was rated the Most Reputable Company in Financial Services for 2019 by Reputation Institute and ranked number one for Customer Experience Among Multi-Channel Banks and Credit Unions in Forrester’s 2019 U.S. Customer Experience Index survey.
Bottom Line
Refinancing your home carries potential pros and cons, so it should be based on your current financial and life situation balanced with your future goals. Refinancing could lower your payment and give you a check at closing to use for whatever you want. It also may move you into a fixed rate and consistent payments. Shortening the term may enable you to pay off your home faster.
On the other hand, refinancing does set a new time clock, so if you refinance a loan with 22 years left on it into a new 30-year term, you’ll pay off your home new online payday loans Mount Gilead later than the original mortgage. If you shorten your term by refinancing from a fixed-rate 30-year term into a fixed-rate 15-year term, it could raise your monthly payment because your new note is spread across fewer months. When you refinance, there are some closing costs, so it’s probably not worth doing if you plan to move within a few years anyway.
