Printer Friendly

VA DROPS INTEREST RATE ON HOME LOANS, ENCOURAGES VETERANS TO REFINANCE

 VA DROPS INTEREST RATE ON HOME LOANS,
 ENCOURAGES VETERANS TO REFINANCE
 WASHINGTON, Aug. 11 /PRNewswire/ -- The Department of Veterans Affairs (VA) is reducing its maximum home loan interest rate from 8 to 7.5 percent, effective Aug. 12. This is the lowest rate the VA has been in 19 years, and the second time in less than two months that the rate has been lowered.
 In announcing the reduction, VA Secretary Edward J. Derwinski said, "The drop in the rate will mean more veterans will qualify for home loans, which will have the practical effect of stimulating the economy and boosting the housing industry. It also means that many veterans can take advantage of the lower rate and refinance their existing loans at a great savings."
 One year ago, the interest rate on VA-guaranteed home loans was 9.5 percent. The decline to 7.5 percent means that the monthly payment on a typical VA loan of $86,000 has decreased by $121.26 -- from $723.26 to $602.00.
 Also effective Aug. 12, VA will decrease by one-half percentage point the maximum rates for graduated payment mortgages to 7.75 percent, home improvement loans to 9 percent, manufactured home loans to 10 percent, manufactured home lot-only loans to 9.5 percent and manufactured home and lot loans to 9.5 percent.
 The lower rate also is good news for veterans interested in refinancing their existing mortgage loans. Recently, more than 33,000 veterans have refinanced their loans to take advantage of lower interest rates, and there are still more than 1.5 million veterans with VA-guaranteed loans with interest rates of 9.5 percent or higher. If those veterans took advantage of current rates, they could realize significant savings. Veterans are encouraged to contact a private lending agency for more information on VA refinancing loans.
 -0- 8/11/92
 /CONTACT: U.S. Department of Veterans Affairs, Office of Public Affairs, 202-535-8300/ CO: U.S. Department of Veterans Affairs ST: District of Columbia IN: SU: ECO


KD -- DC015 -- 9061 08/11/92 15:01 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 11, 1992
Words:345
Previous Article:MORAINE ASSEMBLY PAINT SHOP APPROVED
Next Article:MACY'S TAPS ITS WAY INTO THE GUINNESS BOOK OF WORLD RECORDS -- GOOFY TO LEAD 'THE GOOF TROOP GALLOP' AT MACY'S TAP-O-MANIA --
Topics:


Related Articles
VA LOWERS INTEREST RATE ON HOME LOANS
Countrywide Home Loans Mortgage Rates Fall as Fed Slashes Rates.
Mortgage Investors Corporation Sues VA Secretary to Invalidate Rule.
AHFC Mortgage Activity Tops $1 Billion in FY03.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters