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How does the dowgrading of the US credit rating affect VA interest rates?

Monday, August 8th, 2011

Over the weekend, S&P, one of three main credit rating agencies, decided to downgrade the United States to a AA+ rating from a AAA for the first time in almost 80 yrs.  Many potential home buyers or people looking or thinking about refinancing may wonder what this means for them.  We will address specifically Veterans and VA rates today, but the post can be applied to anyone.

Over the weekend many market analysts and gurus were trying to guess and predict what would happen to interest rates in response to the credit downgrade.  If you were to read a book on the economy or bet on the most likely outcome, you would have predicted, just like the pros, that interest rates would be higher today.  Here is how you look at why that would happen.  Suppose you were lending someone money who had perfect credit and no likelihood of not being able to pay you back, it was almost guaranteed you would get your money back plus the interest.  You would probably give them a very low and stable interest rate in return for them not being a risk to you or your money.  Now suppose that you had a very good reason to believe that the once perfect credit person you were lending money to, would perhaps not be able to pay you or would maybe miss some payments here or there?  Would you want to keep lending them money at the same interest rate or even the same large amounts?  Most likely no!

Well this is how countries, investors, and institutions that were buying US treasuries were expected to react this morning.  One would think they would all start taking money back from the US and this would in turn put the US in a tough position and would ultimately increase interest rates.  However, interestingly enough money poured into US treasuries today and drove VA interest rates lower!

One thing that is worth noting however is that VA mortgage lenders did not pass on a lot of the gains interest rates had today, but instead are in essence sitting on the side lines to see what happens tomorrow.  Normally with as big of a rate rally as we had today interest rates on VA loans would have gotten better than they have, but VA mortgage lenders are waiting to see what tomorrow brings.  The Federal Reserve has their FOMC meeting on interest rates tomorrow too!

Here is to lower VA interest going forward.

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Posted in General Veteran Information, Government, va interest rates | No Comments »

Why doesn’t everyone with a VA loan streamline to a VA hybrid?

Friday, July 29th, 2011

If you would have asked me just a few years ago, if I would ever put my own property or mortgage on an adjustable rate loan, I would have said NO WAY!  Fast forward to today and I only wish I could do what so many men and women Veterans or VA loan holders can do with their loans.  I only wish the VA streamline loan into a VA hybrid loan was something that I could do and take advantage of.  I have not served and thus do not have the right or privelege to get this loan.

In order to take advantage of the VA streamline refinance or VA IRRRL (Interest Rate Reduction Refinance Loan) you must have a VA loan now and must have honorably served in the Armed Forces.  If you do have a VA loan and are eligible and do not take advantage, you are making people like me, who wish we could, very frustrated!  Ok well in all honesty, not everyone benefits from the streamline, but the cases are very few and far between.

Who can benefit from the VA streamline refinance?

  • Anyone with an ARM or adjustable rate loan now
  • Anyone with a fixed rate now that is at 4.25% or higher
  • Anyone that is on a 30 yr loan but wants to pay their home off much faster
  • Anyone that does not plan on being in the home for more than 3-5 yrs.
  • Anyone in a short pinch for cash that could benefit from an instant amount of money in their pocket

So who will NOT BENEFIT from a VA streamline or VA IRRRL?

  • Someone who does not like saving money
  • Someone who won’t take time to educate themselves
  • Someone who has been fed false info for too long

Ok those were joking, kind of.  The fact is very few people will not benefit from the VA streamline.  Those that will not benefit normally have been in their loans for 10 plus years without refinancing and are close to paying the balance off.  Someone who has a fixed rate in the low 4 to high 3 range or someone on a 15 year loan that does NOT need to lower a payment by going to a longer term.  Other than those examples, you will benefit normally by doing the VA streamline.

So please, spend some time on this blog and research all the reasons to streamline your VA loan, or send us a question or call us up.  There has never been a better time to get locked in at such low VA interest rates like there is now.

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Posted in VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | No Comments »

Low VA Mortgage Rates Stay Low, VERY LOW VA RATE

Wednesday, July 13th, 2011

It seems like I have been telling people for the past 2 years or so that VA interest rates were not going to be going any lower.  There were many time that in that window of time that I was right, however overall rates, VA rates especially, have continued to go lower and stay low.  It is times like right now when I wish for many reasons I had the benefit and blessing of a VA loan.

I bought my home in 2007 and even put down 20% on the purchase of the home.  Bad news for me is not only is all that equity gone, but I am also stuck at 6.5% rate even though interest rates are at 4.25% for 30 years or 3.25% on the hybrid loan.  I could be saving literally $800 a month or more if I could streamline refinance but that is not available on a conventional loan.

What is so amazing about the VA mortgage streamline refinance is that you can refinance even if your home has no value or equity.  You could have bought your home in 2007 at 250,000 and now it is worth 175,000 but you can still streamline your VA loan.  Perhaps the downturn in the US economy has affected your credit rating or FICO score?  If this is the case, as bad as that can be, it does NOT disqualify you from the VA streamline program.

Some of the benefits of these extremely low VA rates today are:

  • lots of savings monthly from streamlining
  • easier to decide to streamline
  • the streamline allows you to skip some mortgage payments if done correctly
  • many many more.

If you have a VA mortgage please apply here or give us a call at 866-569-8272 so we can show you what the VA streamline can do for you.

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Posted in Home Values, VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | No Comments »

VA loans with Citi mortgage should be streamlined with Flagship Financial

Wednesday, June 29th, 2011

Something that most military home owners are not aware of is that brokers or mortgage companies that have access to wholesale rates sheets can get them a much lower rate than if they (Veteran) were to call Citimortgage themselves.  This may not make a lot of sense on the surface but if you have ever shopped at Costco or Sam’s club then this example may help.

Why can Costco sell you a bottle of shampoo cheaper than if you were to go directly to lets say Johnson and Johnson’s website and buy it directly from the supplier?  The answer is simple.  Costco has negotiated huge discounts due to the volume of shampoo they buy, due to the fact that they (costco) spend money marketing and selling the shampoo and now this is money that Johnson and Johnson will not have to pay to move their product.

VA mortgage loans are very similar.  Citibank of course has its own loan officers, branches and offices and is certainly willing to do their own loans through what is referred to as a “retail channel.”  A retail location is like the Citi bank on the corner or in the shopping plaza.  If you were to call Citi mortgage directly as a consumer you will work with their retail division and get great service and decent rates.  However, if you call Flagship or any other broker that has access to Citimortgage’s wholesale rates, you will get a much lower rate.

I am not a veteran and do not have a VA loan of course.  My entire mortgage profession has been spent working on VA loans and assisting military families with their home loans.  The other day Citimortgage contacted me directly because I have a loan with them on a rental property of mine and they asked me if I wanted to refinance.  I will keep this story short, but the rep at Wells when I showed him what wholesale rates I could get on my own, simply told me he could not compete and I should do it myself.

So for those of you with VA loans at Citi what does this mean to you?  I am not trying to suggest that Citimortgage is ripping you off or that you should not refinance straight through the retail loan officer, but I do want to make you aware of your options and suggest seeing what Citi mortgage can do for you and then contacting Flagship Financial or another broker and see what they can do for you.

There has never been a better time than now to streamline your VA loan and take advantage of seriously low VA interest rates.  Flagship Financial is dedicated to assisting you with any VA home loan questions you may have.

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Posted in VA Refinance, VA Streamline Refinance, va interest rates | No Comments »

VA loans with Bank of America should be streamlined with Flagship Financial

Wednesday, June 29th, 2011

Something that most military home owners are not aware of is that brokers or mortgage companies that have access to wholesale rates sheets can get them a much lower rate than if they (Veteran) were to call Bank of American themselves.  This may not make a lot of sense on the surface but if you have ever shopped at Costco or Sam’s club then this example may help you get a better grasp on this.

Why can Costco sell you 20 lbs of filet mignon cheaper than if you were to go directly to lets say your local butcher and buy it directly from them?  The answer is simple.  Costco has negotiated huge discounts due to the volume of meat they buy, due to the fact that they (costco) spend money marketing and selling the meat and now this is money that your local butcher will not have to pay to move their product.

VA mortgage loans are very similar.  Bank of America of course has its own loan officers, branches and offices and is certainly willing to do their own loans through what is referred to as a “retail channel.”  A retail location is like the Bank of America bank on the corner or in the shopping plaza.  If you were to call Bank of America directly as a consumer you will work with their retail division and get great service and decent rates.  However, if you call Low VA Rates, a division of Flagship Financial or any other broker that has access to wholesale rates, you will get a much lower rate.

I am not a veteran and do not have a VA loan of course.  My entire mortgage profession has been spent working on VA loans and assisting military families with their home loans.  The other day Bank of America contacted me directly because I have a loan with them on a rental property of mine and they asked me if I wanted to refinance.  I will keep this story short, but the rep at B of A when I showed him what wholesale rates I could get on my own, simply told me he could not compete and I should do it myself.  Here is an excerpt from that email:

I understand……what you saying is that wholesale is at a price of 104.00 ( i assume they want to get paid) so they can give you 3 points….and we are at 101.00…..

My manager has been with Bank of America when it was Countrywide  for 15 years and he says there is no way we can be 3 points away from wholesale, but you know what you’re doing and if you can get it I would jump on it too..

So for those of you with VA loans at Bank of America what does this mean to you?  I am not trying to suggest that Bank of America is ripping you off or that you should not refinance straight through the retail loan officer, but I do want to make you aware of your options and suggest seeing what Bank of America can do for you and then contacting Flagship Financial or another broker and see what they can do for you.

There has never been a better time than now to streamline your VA loan and take advantage of seriously low VA interest rates.  Flagship Financial is dedicated to assisting you with any VA home loan questions you may have.

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Posted in VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | No Comments »

VA Streamine: Save Military Personnel Possibly Hundreds Monthly-Rock Bottom Interest Rates

Friday, June 10th, 2011

Many Americans are trying to save money anyway they can. Cutting costs by stretching their dollar on food, clothing and medicine helps. But, being able to reduce large expenses on a monthly basis, would be the most help. A lot of people have refinanced their homes. Now, with the VA interest rates hitting close to or being at rock bottom, active or inactive servicemen and women who currently have a VA loan, can save big money every month. They can refinance their existing VA loans under the VA Streamline Refinance Program.

A 620 Fico score or home appraisal no longer needed

If you have already tried to refinance under this loan program and failed, it would most likely benefit you to try to refinance again. As of April 18, 2011, the rules have changed for refinancing with the VA Streamline Refinance Program. Previous failed attempts might not be a problem for you now.

A Fico score of 620 or an appraisal is no longer needed. Also, this loan addresses the difficulties with your current VA loan being more than what your home is worth.

Some VA interest rates are as low as 2.75 percent with an APR of 2.45 percent. These rates are historically at low amounts. In many cases, hundreds of dollars can be saved each month on your mortgage payment.

Quick and easy loan approval

The VA Streamline Refinance Program is designed for active and inactive military personnel to take advantage of the very low interest rates. It was set up to make it easy and quick. Also, there are some places that will pre-approve you in just 60 seconds.

Other qualifying features that this loan has are:

Your existing VA loan has to be up to date on its monthly payments. You can not be behind.

There cannot be more than one-30-day late mortgage payment made on your existing VA loan within the last 12 months.

Employment and income verification will probably be needed.

A refund of your existing escrow account can be made to you.

You cannot receive any cash back funds from the refinance.

After the loan is approved, you can skip up to two monthly payments.

American military personnel and their families can widely benefit from the VA Streamline refinance of their existing VA loan, especially since the VA interest rates are very low. It will just save a lot of money each month for them. They can use the financial boost to help get caught up on other important bills. Families can stop skimping on their food, clothing and medicine expenses. Reducing monthly mortgage expenses will ease the money crunch that seems to be never ending.

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Posted in Home Values, VA Credit Score Info, VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | No Comments »

VA Streamline With No Appraisal

Monday, May 2nd, 2011

There are different kinds of loans that will enable a homeowner to lower their interest rate. By lowering their interest rate, they’ll also be able to lower their monthly payment. Veterans get a benefit that others don’t. That’s the VA streamline loan, also known as the Interest Rate Reduction Refinancing Loan. Best of all, it’s possible to get a VA streamline with no appraisal.

VA loan holders used to be able to refinance their homes with VA streamline loans very easily. Appraisals weren’t done and credit histories weren’t pulled. But that all changed when the housing market crashed. As the economy suffered, so did real estate. VA streamline loans were impossible to get if someone was upside down in their mortgage or who had a low FICO or credit score.

Effective April 18th of 2011, it’s entirely possible to get a VA streamline with no appraisal. So, what does that mean? It means that a person can easily qualify for one of these loans which could lower their interest rate by 1% or even more. Depending on what the house is valued at, a 1% decrease can mean hundreds of dollars in savings every month.

There are many benefits to a VA streamline loan.

- No out of pocket money – closing costs and other fees can be rolled into the total amount that’s being refinanced

- Low interest rates – Enjoy rates that are lower than what the rest of the American population can get because of being a veteran

- Locked in rates – It’s not a variable rate, which means you’re locked into the low rate no matter what

After serving your country, you deserve some great benefits as a Veteran. Being a veteran entitles you to the VA streamline loan. As long as your mortgage was done with a VA loan, you’ll meet the qualifications. Without having a home appraisal or credit check means that you’re more likely to qualify for the loan.

A VA streamline loan with no appraisal is a best case scenario when deciding to refinance your home. Many companies offer low rates, but they aren’t as low as what you can get with a VA streamline. After all, they’re designed to reward veterans. Taking advantage of this kind of opportunity will ensure that you are rewarded with a great rate that surpasses what many people in America are getting. Plus, refinancing is a much better option of getting out of a tough financial situation than bankruptcy or foreclosure.

Getting a VA streamline is much easier since April 18th. Low VA rates are just a click away. You’ll be able to fill out the application and get a response quickly. When there’s no dependency on credit checks and appraisals, you’ll be able to get a response quicker than ever. You’ll then be able to start saving money once your rate goes down.

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Posted in VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | 4 Comments »

VA Streamlines Do Not Require An Appraisal Of Home Value

Friday, April 22nd, 2011

Effective April 18, 2011!!!!

With interest rates still very low, many home owners are refinancing their mortgages to get lower finance rates. They face a tons of paperwork and documentation. The process can last a while, need a new appraisal and generally be a pain in the neck. Of special concern is the appraisal as so many home owner’s properties have seen values reduced to a number lower than their mortgage. A 1% reduction can save you $100 to $600 per month with no out-of-pocket expenses.

Fortunately, under the VA Streamline Program, Veteran’s Administration mortgage borrowers can refinance their property without an appraisal. Countless number of veterans and active duty military members are fortunate to take part in the United States Department of Veteran’s Affairs Streamlines Mortgage Financing program. The program is sometimes called IRRRL, an acronym for Interest Rate Reduction Refinancing Loan.

The VA Streamlines is truly an express loan:

No appraisal needed
No income or employment verification required
No credit report required
There is no need for a termite inspection
Loans close quickly

However, though the Veteran’s Administration backs the loan and doesn’t require any of the above items, you must shop for lenders as some require appraisals and credit reports.

Your existing Veteran’s Administration loan must be paid on time for the past 12 months and current when you apply for refinancing. Additionally, you may only refinance an existing Veteran’s Administration loan with this program.

Veteran’s cannot refinance for a higher amount that the refinanced mortgage, in other words no cash back to the borrower. The exception to this is the borrower may add up to $6,000 for energy efficiency improvements and add any loan origination costs too. Be careful though, as this will raise your monthly payment than a straight refinancing. In addition, some lenders may want you to look at a 15 year term for the Streamline as it will save you tens of thousands of dollars in interest. But, the monthly payment will be much higher as you are repaying much more principle than if you write a thirty year repayment plan refinancing. Make sure you can afford the payments as your home is at stake.

The occupancy requirement for a Veteran’s Administration Streamline is different from your original Veteran’s Administration mortgage loan. For the original loan you had to certify that you would be occupying the home, for an IRRR loan you are only required to certify that at one time you lived at the property.

An additional feature of Veteran’ Affair Streamline refinancing is that you may up to skip two payments over the life of the loan – they are put at the back-end of your loan.

There is no better refinancing program available than the VA Streamlines program. With little paperwork, no out of cost expenses as you can roll closing costs into the loan and the potential to significantly cut your monthly mortgage payment this is loan that you should explore at once. It could save you a bundle of money.

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Posted in Home Values, VA Credit Score Info, VA Refinance, VA Streamline Refinance, underwriting, va interest rates | No Comments »

VA Streamline Rates Fall To 4.25%

Monday, April 11th, 2011

The housing market is very weak. As a result, people are defaulting on their mortgages and filing bankruptcy. All of these actions result in the economy weakening. So, what’s the federal government doing about it? They’re starting with their veterans by offering a VA streamline mortgage that can save you hundreds of dollars every single month.

If you are a veteran and have a mortgage that’s financed through a VA loan, then you can qualify for this loan. Think of the possibilities – a mortgage designed just for you, all because you’ve served your country. It’s a great benefit that you should take advantage of.

As long as your current interest rate is higher than 5%, then you stand to save a significant amount of money. Regardless of whether your current interest rate is fixed or variable, the streamline mortgage loan can be the answer you’re looking for.

The streamline mortgage is also referred to as interest rate reduction refinancing loan. The difference between this loan and the other refinancing loans that are on the market is that this is designed for veterans. Other loan companies may be able to offer a great interest rate, but it could be temporary. As soon as the market turns around, that rate that was saving you money could sky rocket, leaving you powerless to do anything about it. The VA streamline mortgage, however, is a permanent, low rate. This means that you’re locked into the low VA rate – currently as low as 4.25%.

An interest rate reduction of only 1% is enough to save you hundreds of dollars. For every 1% that you reduce your current interest rate by, you can save anywhere from $100 and $600, all dependent on the amount your loan is for. This amount of money can dramatically affect your cash flow and personal finances. Think of what you can do with a couple hundred dollars a month – you can pay off other debt, go on vacation, or create a comfort zone from your bills.

The VA streamline mortgage loan is something you can’t afford not to do. There are no out of pocket expenses because pre-paids and closing costs can be rolled into the new loan amount. Other companies require you to pay that up front. The process is easy and it’s simple to qualify for. Getting the loan could change the way you’re living, all because you took advantage of the benefits that are given to you because of being a veteran.

All across America, people are struggling. The interest rate reduction loan is an opportunity to get you and the rest of the economy, back on track.

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Posted in Home Values, VA Refinance, VA Streamline Refinance, va interest rates | No Comments »

Lower Your VA Interest Rate Today With A Streamline Mortgage

Monday, April 4th, 2011

Your mortgage payment is probably the most expensive payment you make every month. The reason for that high payment is the interest rate. This means that if you can lower your VA interest rate, then you can save money. In our current state of economics, or anytime for that matter, saving money is always a good thing.

If you are a Veteran, you’ve served your country and are rewarded with certain benefits that the rest of America isn’t eligible for. One of these benefits is a VA loan on your mortgage.

Unfortunately, you may not have gotten the best possible rate the first time around. That’s why the federal government is looking to boost the economy and help veterans with a VA streamline loan. This loan is actually an interest rate reduction refinancing loan that you can qualify for as long as your current home mortgage was financed with a VA loan and your current interest rate is above 5%.

Your VA interest rate can be reduced dramatically. Depending on what your current home is worth, what the amount your current loan is for, as well as some other basics, like credit history and such will give you a monthly saving that you can’t pass up. A 1% reduction in the VA interest rate will result in anywhere between $100 and $600 per month savings. Per month! That means that just by refinancing your mortgage loan you save thousands of dollars a year.

Many mortgage companies charge you money out of pocket to refinance a loan. However, as a Veteran, this is another benefit to take advantage of. Any closing costs and pre-paids can be added to the new loan, which means you don’t have to pay anything up front. The process can take only minutes and the ability to qualify is very easy.

The VA interest rates are some of the lowest in the country right now. Most mortgage companies can’t come close to these rates, and best of all, they’re permanent. Other companies may offer you a low rate, but it’s an adjustable rate, which means that while it’s good now, it might not stay that way. The VA streamline mortgage is a low, fixed rate loan that keeps your savings high and your payments low for the length of the loan. You can’t afford not to take advantage of this great opportunity.

A streamline mortgage loan is the best way for you to save money and lower your VA interest rate. The federal government is trying to turn the economy around and this is their way of helping all of the veterans. If you like saving money and have a current VA mortgage, then this is the refinancing option you want to be a part of.

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Posted in VA Cashout Refinance, VA Loan, va interest rates | No Comments »

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