The most notable advantage of a  Mortgage is that there is no down payment required. it means you have not to give any downpayment for this.Veterans are able to purchase a home with nothing out of their pocket. And additionally, the qualifying standards to get approved for a loan under the VA program are generally much easier than those of a conventional loan.

Loans are not without disadvantages, however. The primary drawback of these loans is the one-time fee that is charged to the veteran by the Veterans Affairs. This fee is tacked onto the loan and is typically 2% of the total amount borrowed. This fee can be lowered if the borrower makes a down payment, however.

Interest rates, in comparison to conventional loans, are generally about the same, and there is little advantage with a VA loan in this area. Additionally, the loan limits guaranteed under the VA program are similar to that of a conventional conforming loan, currently at $417,000.

It is important to note that the Veterans Affairs does not actually originate and fund loans themselves, they simply guarantee loans made by lenders. Because of their guarantee and program policies, lenders are able to feel comfortable making these loans directly available to veterans.

While VA loans do provide  with a distinct advantage in not requiring a down payment, it is  still a smart idea for home seekers, veterans or not, to shop around for the best rates and terms. The borrower may find that a conventional loan provides a better offer than the VA Mortgage – it always pays to be aware of the options available.

The State Bank of India (SBI) does not foresee any immediate change in lending rates. SBI chairman .P. Bhatt, who was in the city today, said the bank’s initiative in the home loan segment had helped both customers and real estate developers.

“We reduced the lending home loan  rates to 8 per cent per annum and as a result developers and customers started returning to the market. Other banks were also forced to follow our footsteps,” Bhatt said.

He claimed there was enough liquidity in the market and credit growth had not yet picked up. “I don’t see any hike in lending rates of the bank in the next six months. There is enough money available in the market and banks are not facing any difficulties in providing credit to customers at this point of time,” said Bhatt.

Wednesday 5PM 12/30/09 Today’s Current Mortgage Rates Update

I’m David Beadle. Here’s what’s happening from RateAlertNow.com.

Thirty-year mortgage rates enjoyed a second-consecutive day of improvement on Wednesday. It was mostly the “result” of relief about the successful conclusion to a 118 billion dollar “borrowing binge” by the U.S. Treasury, with sale of 7-Year securities to global investors.

The national-average thirty-year fixed-rate mortgage is now at five percent with two and-one-eighth points, down an eighth of a point from Tuesday, for a savings of one-hundred-twenty-five dollars on a one-hundred-thousand dollar loan.

The five-and-a-quarter percent rate is at five-eighths of a point, also down an eighth of a point from Tuesday.

Remember: one point is worth “one percent” of the loan amount. This means “one point” is one-thousand dollars on a one-hundred- thousand dollar loan…and two-thousand dollars on a two-hundred thousand dollar loan.

When it comes to a two-point loan, that represents two percent of the loan amount. This means “two points” is two-thousand dollars on a one-hundred thousand dollar loan…and four-thousand dollars on a two-hundred thousand dollar loan.

The national-average fifteen-year fixed-rate mortgage was lower as well, with the four-and-a-half-percent rate now at one-and-“an”-eighth points, down an eighth of a point from Tuesday. And the four-and-three-quarters percent rate fell a quarter-point to just one-eighth of a point.

In order for you to know “when” to lock your “floating” fixed-rate
mortgage, you have to have “an Early Warning” system on changes in current rates & points +before+ they occur throughout every business day. That’s where my “Rate Alert Now” service becomes essential to your “rate lock” strategy. I’ll tell you via regular e-mail and/or mobile “text messaging” when current rates are about to go up, and if you act quickly, you may be able to reach your local mortgage originator by phone to lock your rate +before+ the mortgage company becomes aware of what’s going on, and changes its rates. The cost of my service is less than one dollar a day.

On Wednesday, the Chicago purchasing managers said that December manufacturing activity in the Upper Midwest rose sharply to a level of 60 from November’s 56.1.

On Thursday, we-will-receive the latest look at first-time claims for +weekly+ state unemployment benefits. An eight-thousand increase is expected.

That’s what’s happening. I’m David Beadle. For full details on my real-time mortgage rate alert service to help you “beat the system,” visit RateAlertNow.com and check back here on Thursday morning for my next *free* mortgage rate update.