Yes, Virginia, Some Vets Pay 17% for Their Loans

Somewhere out there, five borrowers are paying an interest rate of 17% or better. And 20,000 are paying 10% or more.These, along with some 600,000 who are still paying at least 8.5%, are all soldiers, sailors and aviators whose mortgages are backed by the Veterans Administration, Mark Bologna, the DVA's new director of the VA Loan Guaranty program, told the MBA government policy and loan production conference. He said it's understandable why the five vets haven't turned in their 17% loans for new ones at lower rates; after all, their average balance is just $8,800. But Mr. Bologna told the meeting that he's hard pressed to figure out why the others haven't already jumped at the opportunity to take advantage of some of the lowest loan rates on record. He said one of his first priorities will be to reach out to borrowers who might want to refinance. He also reported that through the first six months of fiscal 2009, the VA has put its stamp on 150,000 mortgages for America's veterans. In all of fiscal '08, the agency guaranteed 150,000 loans.