Veterans are refinancing at a healthy clip these days as 2011 ends and loan limits on Department of Veterans Affairs guaranteed mortgages are slated to adjust downward in many counties across the nation.
New figures from the VA show that over the past 10 weeks roughly 60,000 veterans refinanced, compared to 171,000 refinancings for all of fiscal year 2011, which ended Sept. 30.
In dollar terms, VA lenders refinanced $13.6 billion of home mortgages during the past 10 weeks, compared to $34.8 billion in FY 2011. Production of VA-guaranteed home purchase loans totaled $40.1 billion in FY 2011.
Meanwhile, Congress has not acted to extend the $729,730 loan limit base for VA loans and, barring any legislative action, it will drop to $625,500 on January 1.
VA does not have a maximum loan limit. Rather it has a maximum guarantee amount, which is 25% of the published VA loan limit.
The department recently published a list of high cost areas that will be impacted on January 1. In Washington D.C., the VA loan limit will drop to $625,500 from $818,750 today.
Veterans and active duty servicemembers living in San Diego County will see their loan limit fall to $477,000 from $537,500. In Honolulu, the VA loan limit will fall to $695,750 from $741,250.
