I am an army reservist returning from Iraq. Before I left I bought a house for 125k at 7% ammortized for 2 years. The 2 years are up and the bank says they can't offer me the same rate(going up to 9%). I am looking to refinance as I'm just throwing my money away here. I sent in my application for the certifiate of eligibility 2 weeks ago to the LA center and nothing back yet. I have very little income, aside from my drill pay and GI Bill ($1000/ month). I am a full time engineering student in my junior year. The plan was for my wife to support us while I finished school, but we are still waiting on immigation papers (ETA January). She has a job but her income can't be counted as she is not a resident. I have $20,000 saved in the bank and still owe 120k in principal on the house. The bank I have the mortgage with does not work with VA loans. My question is this: How can I re-finance (with VA or not) to a lower rate and minimize the closing costs given that my income is so low? What lender should I contact?
You have several options. Any VA approved lender can get your COE online for you so that's not an issue. You have liquid assets so that is used as a compensatinig factor. It doesn't sound like you will have any major issues refinancing it. What state are you in?
