Thank you for your service.
I have a ton of experience with VA mortgages and specifically 2nd tier entitlement.
In counties where the VA loan limits is $417,000, your basic entitlement is $417,000 X 25% which comes out to $104,250.
Now we need to subtract the amount of entitlement that was used on current VA mortgage from $104,250 to determine how much entitlement you have available.
If your purchase price was $198,000 then we multiply that by 25% to get the amount of entitlement that was used on that mortgage which is $49,500 so that means you have $54,750 of entitlement available.
With $54,750 in entitlement, you can buy a home for up to $219,000 on a VA mortgage without a down payment.
The question will be whether or not you can qualify for the new mortgage with the existing mortgage counted against your income.
Please feel free to contact me for more information or help. You can also find more info on my VA mortgage website by clicking the link below.
Senior Mortgage Banker
Peoples Bank & Trust Co.
Check out my recommendations right here on Trulia from some of my past clients:http://www.trulia.com/profile/johnburke/#__rec