LowVARates

  • Refinance

  • Purchase

  • Apply Now

Archive for the ‘VA Loan’ Category

« Older Entries

VA loans with Wells Fargo should be streamlined with Flagship Financial

Wednesday, September 1st, 2010

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 Wells Fargo 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.  Wells Fargo 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 Wells Fargo bank on the corner or in the shopping plaza.  If you were to call Wells Fargo 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 Wells Fargo’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 Wells Fargo 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.  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 Wells for 15 years and he says there is no way we can be 3 points away from wholesale, but you know what your doing and if you can get it I would jump on it too..

So for those of you with VA loans at Wells Fargo what does this mean to you?  I am not trying to suggest that Wells Fargo 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 Wells Fargo 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.

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

Veteran should refinance VA loans now

Friday, August 20th, 2010

Why Refinance Now?

In general  VA Loan rates are  lower than that of a conventional loan. Many people, seeing the economy the way that it is start to shop and wonder if the rates are going to keep dropping. The question has been asked various times if now is the best time to refinance. After having been in the business for many years and having dealt with only VA Loans, I would say yes, now is the time to refinance a VA loan.

The VA Streamline refinance is a very simple process and only takes us about 3-4 weeks to close. If you are wondering what a refinance at this time can do for you here is a list of four great things a VA Refinance can do for you:

Lower your monthly payment
The rates on a VA Loan are as low as ever depending on loan size and state we can get our Veterans or Active Military rates as low as 3%. Simply exchanging a higher interest rate for a lower one could reduce your monthly mortgage payment by hundreds of dollars. If you decide not to refinance the savings that you could have will just go into the banks pocket instead of your own.
Stabilize your mortgage rate
If you already have an adjustable rate mortgage and your initial interest rate period is about to end, you can refinance to a fixed-rate that may save you money over time. The interest rate on an adjustable-rate mortgage can keep climbing. A fixed-rate loan takes the guesswork out of budgeting, giving more peace of mind that your payment will never go up.
More cash in your pocket
You can get funds by doing a cash-out refinancing, where you can draw on your home’s equity by borrowing more than you currently owe. It can be cheaper than taking a home equity loan or second mortgage, which generally carry higher interest rates. With the VA Streamline refinance you are also able to defer 2 monthly payments after close, as well as receive the amount in your escrow account back.
Eliminate Debt
If you have enough equity in your home to cover your other debts, refinancing to get the cash may work to your advantage. With the money that you save from the 2 deferred payments you will also be able to payoff credit cards or other debt that has higher interest rates. You will be able to become debt free and save hundreds of dollars that you would of paid in interest otherwise.

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

Military VA Loan Holders Have Never Had an Opportunity in History Like They do Now

Monday, August 9th, 2010

I began doing VA streamline loans for military home owner in the fall of 1997.  At this time, I was attending college and simply wanted a part-time job that I can feel good about and it would also allow me to make a reasonable income.  A friend of mine, was working at a mortgage company that focused their efforts on veterans and a special type of loan for these military homeowners.  My first day of work I was given a sheet of paper full of phone numbers and was asked to start dialing as many veteran homeowners as possible.  Basically, at this time VA interest rates have recently come off of some of their highest levels in years and the mortgage industry was very under regulated and here I was at a company that was offering streamline refinances to almost anybody with a VA loan and a heart beat.  See a great video here on this subject!

Fast forward now almost 15 years later and I am still doing home loans for nation’s finest; military homeowners.  Today however, our mortgage industry is being regulated to the extreme and banks are making it more and more difficult for those of you with VA loans to take advantage of these historic interest rates.  I am not passing all the blame onto banks.  As someone who has worked in the mortgage industry for the past 15 years I realize the industry needed overhaul, regulation, and change.  However, as is typical we have now seen a knee-jerk reaction and over correction making it very difficult for some of the most deserving borrowers to take advantage of these historically low interest rates.

Since my beginning in 1997 I have participated in 4 or 5 what we like to call “refi booms.”  A refi boom is a time where almost anyone with a loan is looking to refinance and almost everyone can benefit from that refinance.  The situation we currently have in front of us here in the United States is one that I would have bet my entire career against.  For years there have been home owners not taking advantage of low interest rates during our refi booms and their rationale or reasoning at that time was that they knew interest rates would go lower.  I thought they were all crazy and to be quite honest some even ignorant.

I had conversation after conversation with military families that told me they were not interested in saving $200 a month for one reason or the other.  As a loan officer nothing frustrated me more than hearing someone that did not think it was worth their time, some costs and some energy to save $200 or more a month, not to mention hundreds of thousands over the long haul.

Some of the most common reasons I would hear as to why a VA loan holder would not want to streamline refinance are:

  • The closing costs hurt my equity
  • I’m not saving enough
  • I think rates will go lower
  • I don’t want to start over on a new 30 year loan
  • and the list would go on an one

I am here today to tell you that if you are a veteran or military home owner and you have an interest rate at 4.75% fixed or higher or any type of adjustable rate or hybrid arm, THAT YOU NEED TO REFINANCE NOW!

You may be saying, “Eric you are admitting in this post that you were wrong before and that those that waited to refinance were right.”  THIS IS NOT WHAT I AM SAYING. Those families that refinanced along the way have saved way more money by taking advantage all the way along the drop.  It is the families that waited that may at this time be just S.O.L.

Those families that waited do not have access to the same easy VA streamline loans that they could have had years ago.  Just two years ago your home’s value (appraisal) was not needed, you did not have to have a FICO or credit score looked at, you did not have to be employed, and this list goes on and on.  So for the many families that waited, congratulations YOU WERE RIGHT, rates have gone lower, but for those same families that can NOT TAKE ADVANTAGE now I am sorry.

As a VA mortgage insider I am here to tell you at the rate that VA loans are changing, it is a matter of time and very little time until there are no longer VA streamline loans available.  I think this is a tragedy to our military, but it is the world we live in today.

Who cares if rates may be going even lower?  All of the reasons NOT TO DO A VA Streamline in the past are now gone.  Let’s revisit them:

  • The closing costs hurt my equity
  • I’m not saving enough
  • I think rates will go lower
  • I don’t want to start over on a new 30 year loan

    • The closing costs hurt my equity.

    NO CLOSING COST VA LOANS are the majority of the loans we are doing now.  Seriously NO COST LOANS.  (see video here).  Do you really have any equity left anyway?

    I’m not saving enough.

    We are in what some tend to compare to the Great Depression #2 and if a couple hundred bucks a month is not worth it to you now, then it will never be.  I also want to remind you that when you do a VA streamline loan you get to postpone two mortgage payments and get a cash refund of your current escrow balance, thus putting immediate money in your pockets.

    I think rates will go lower

    You are just plane gambling and should mortgage your whole house and go to Vegas if you think this.  Suppose they do go lower, have you really lost by taking current rates that are the lowest they have been on record?

    I don’t want to start over on a new 30 year loan

    We have been offering 25 and 20 year loans at a pace never before seen.  Because rates have gone so low on VA loans, we see people taking a 25 or 20 year loan and still saving money each month!

    Dear VA home owners, please for the love of whatever you cherish, contact us now and at least look into the VA streamline loan.  I seriously have never been a part of an opportunity like we see now and am very weary that it will ever come around again!

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

    History of the VA Loan

    Tuesday, August 3rd, 2010

    A VA loan is a mortgage loan that is guaranteed by the US Departments of Veterans Affairs. The VA loan program assists Veterans who have served in the armed services become homeowners. The basic intention of the VA direct home loan program is to supply home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment.

    The Current VA loan mortgage is a byproduct of the Servicemen’s Readjustment Act, more commonly called the GI Bill of Rights, which was passed by Congress in 1944. Harry W. Colmery, a World War I Veteran, wrote the first draft of the G.I. Bill. The G.I. Bill provided college or vocational education for returning World War II veterans, one year compensation for out of work veterans and also provided different loan types to Veterans to buy homes or start business. The G.I. bill provided low interest, zero down payment home loans for serviceman. The G.I. bill was created to prevent a repetition of the Bonus March of 1932, in which World War I Veterans marched on Washington DC demanding payments of their World War I bonuses. The Bonus March was dispersed by the army and the Veterans were not paid.

    The G.I. Bill is considered one o the most significant pieces of legislation ever passed by the U.S. Congress. The education benefits opened College education to the masses, in 1947, veterans made up almost half of the nation’s college students. It allowed millions of families to purchase their first homes and moved many families out of urban apartments and into suburban homes and resulted in the suburbanization of the American in the 1950’s and the postwar baby boom. Prior to the war suburbs tended to be the homes of the wealthy and upper class. The G.I. bill effectively created the American middle class that we know today.

    The Success of the 1944 G.I. bill prompted the government to offer similar measures to later generation of Veterans. The Veterans Adjustment Act of 1952 offered veterans of the Korean Conflict that served for more than 90 days, similar benefits that were offered through the G.I. Bill. These bills eventually lead to the Veterans Readjustment Benefits Act of 1966. Whereas the G.I. Bill of 1944 and 1952 compensated veterans of wartime service, the new bill extended benefits to Veterans who served in war and peace.

    Further acts were passed in Congress in following years. The Veterans Housing Act of 1970 removed all termination dates for applying for VA housing loan and also provided VA loans for mobile homes. The Veterans Housing Benefits Improvement Act of 1978 expanded and increased previous benefits given to Veterans. In 1992, the VA loan guarantee program was enlarged to include Reservists and National Guard personnel who served honorably for at least six years. In association with the VA’s program, the Servicemembers’ Civil Relief Act protects service members from financial woes on their home loan that may occur as a result of active duty commitments, freezing their interest rates at 6%. These acts have allowed Veterans through the years to buy homes when the might not have been able to on their own.

    Tags: , , , , ,
    Posted in Uncategorized, VA Interests, VA Loan, Veteran Service | No Comments »

    True NO Cost VA Streamline Loans are Easier Than Ever

    Thursday, July 22nd, 2010

    image

    It is absolutely insane how low VA interest rates have gotten.  I have been doing VA streamline loans for the past 15 years and though YES it is tougher to do a VA streamline loan today than it was yesterday, VA interest rates are so low that I, an industry veteran would have bet the farm that they would never have gotten this low!  For years, in order to take advantage of the absolute LOWEST Rates possible, you would have to pay points and closing costs.  In essence this is not a bad thing, and we have posts that explain why paying closing costs actually makes sense.  However, due to some recent changes in the law and what VA lenders want, many VA loan officers cannot charge some of the fees that they used to be able to charge.

    If you have not refinanced before due to closing costs I promise you that you should contact a VA loan officer immediately or apply online at LowVARates immediately to take advantage of this unique situation you have.  Because VA interest rates can change daily I am always hesitant to quote rates but would like to give you a range of what VA loan officers that I know are quoting today:

    4.25% 30 yr fixed with little to no points

    4.5% with no Lender fees at all

    4.75 true NO COST loans.

    The VA hybrid rates are around 3.25%

    Please do yourself a favor and take advantage of the VA streamline loan which today is truly your diamond in the rough.  Our economy sucks, it really does and I know it will get better, but until then all military home owners with a VA loan should refinance now.

    If your current rate is at 4.75% or higher there is no reason to not take advantage of the no cost or no point VA refinance loan.

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

    VA Streamlines and Bankruptcies

    Friday, July 16th, 2010

    Does a BK have any effect on a VA streamline refinance? This is a question that gets asked by Veterans almost every day. The simple answer is YES! The requirements or guidelines are much different than if you were trying to purchase a home. I might add that it also depends on if the Bankruptcy was a chapter 7 or  chapter 13.

    The difference between a BK 7 and 13 is this – Chapter 7 involves a complete liquidation of debts listed in the bankruptcy whereas the Chapter 13 involves debt restructuring by paying a trustee every month who in turns pays the debts listed on the bankruptcy.

    Here is what the VA says on a streamline refinance bankruptcy – “Although no underwriting is required, approval of new credit may be required by the trustee in a chapter 13 BK” This is always the case. If a Veteran is paying on a chapter 13 BK they must get special permission from the courts and trustee to refinance their VA loan. Things are different for a Chapter 7. Most lenders will do a streamline refinance just as long as the Chapter 7 bankruptcy is discharged.

    Remember though that the rules of late payments and minimum credit scores are still applicable. A Veteran cannot have any 30 day late payments on the mortgage within the last 12 months and must have a credit score of at least 620. If a Chapter 7 has just been discharged chances are the credit score is not going to be 620 and thus making them ineligible for the streamline refinance. Please understand that the credit score requirement IS NOT VA! This is a lender overlay.

    If this information has been helpful or you have additional questions please contact me at 1-888-657-2848 ext 222.

    Tags: , , , , ,
    Posted in VA Credit Score Info, VA Loan, VA Streamline Refinance, underwriting | No Comments »

    THE TOP 3 REASONS TO DO A VA STREAMLINE REFINANCE

    Thursday, July 8th, 2010

    Here are 3 reasons to use the VA streamline loan

    1. Lower Interest rate with no new appraisal required. As long as a veteran currently has a VA home loan and has made their mortgage payments on time, they are eligible to refinance their loan without a new appraisal. This will save a veteran homeowner up to $450 just for the appraisal fee. In this current economic downturn with home values dropping as much as they have, this is a great benefit. Also, interest rates are at all time lows right now.
    2. Defer up to 2 payments. The VA will allow a borrower to defer up to 2 payments with a VA Streamline refinance. With these 2 deferred payments a borrower can pay down other higher interest bearing debt that they may have, they can apply it to their new mortgage when the first payment comes due to reduce the principal amount of the new loan or they can put it into savings and hold onto it. In today’s poor economic environment many VA homeowner’s are excited to be able to defer these payments to allow them to get caught up with the ever increasing cost of living.
    3. Do not have to re-qualify for the refinance. Another great benefit of the VA Streamline refinance is that you do not have to income qualify again. You also don’t have to show employment or assets. As long as you have made your payments on time and currently have a VA loan you would be eligible. Because we don’t have to look at your income and assets again it’s a much quicker process. It usually take between 2-3 weeks from start to finish.

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

    NOW IS THE TIME TO REFINANCE VA STREAMLINE

    Friday, July 2nd, 2010

    Perhaps you have heard about VA interest rates and how CRAZY low they are?  If not here is your notice!!!

    For decades the VA has offered a VA streamline refinance for those who currently have a VA loan.

    Here are the benefits!!!

    1.  No appraisal- a huge benefit, even if you are upside down in a house at this moment, refinancing could make sense if you are planning on being there long term.  You will save on interest and as the housing market rebounds so will your values.

    2.  No income qualifying-  that is correct no income is necessary sounds too good to be true almost, but that is the way the VA has set it up for over a decade.  No asset verification either.

    3.  “Skip” payments-  Defer is the real word, but when you refi on a streamline- you defer two monthly payments, for example right now folks who are sending me their loan papers are not going to make August or September’s payments.  That is a function of how mortgages are paid in this country, in arrears.

    4.  Escrow refund-  when the old higher rate loan is paid off, whatever is left in the escrow account of that old loan, that money is refunded to the homeowner.  For example lets say you are with ABC Bank.  When we pay them off in August, they have 30 days to return the $3200 that was in the escrow account that had be used to pay the annual taxes and homeowners insurance.

    5.  A lower payment!  Isn’t that the ultimate goal of a refinance?   With rates currently at 3.25% and up on the VA’s hybrid and fixed rates at all time lows 4.25% now is the time to refi.

    Don’t wait around to see what happens, we hear that all the time, and the time now is to act.  Take the bull by the horns, be a true American this 4th of July and take charge and stop overpaying for your house and mortgage.

    There is absolutely no reason to pay more!   You wouldn’t walk into the grocery store and pay $1 more for a gallon of milk….would you?  I didn’t think so.  Don’t do it on your home loan either.

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

    A va rate reduction loan may be right for you

    Monday, June 28th, 2010

    If you are trying to make ends meet and just need a little help and have a VA loan then a va rate reduction loan may be perfect for you.   A va rate reduction loan allows you to lower your interest rate with out paying any money out of your pocket.  All of the fees are included in the new loan and there are no appraisals or credit reports required.  The lender may want one but they are not required.  You will be able to benefit from having a va rate reduction loan because it will lower how much you are paying every month.  You will not get to get cash upfront but it will help you to be able to pay the other bills or just give you a little cushion each month.  In order to qualify for a va rate reduction loan you must already have a va loan in place.  When attempting to get this you should check with different lenders so that you are ensured that you are getting the best rate possible.  The interest rate must be less then the interest rate you are currently paying in order to qualify for a va rate reduction loan.

    Tags: ,
    Posted in VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | 1 Comment »

    VA Streamline Interest Rates Hit an all Time Low

    Thursday, June 24th, 2010

    If you have a VA loan with an interest rate that is higher than 4.75% fixed keep reading.

    clip_image002

    For years industry experts have told home owner to quit sitting on the fence and to pull the refinance trigger. This has not been flawed or incorrect guidance from our real estate industry experts. The truth is nobody could have seen interest rates going any lower than they have been in recent past. The chart above shows that we have been sitting at historical lows for the past few years.

    Now if you are one of those few that for some odd reason did not refinance at the behest of your family, friends, and financial advisors then please stop the insanity now and take advantage of these extremely low interest rates.

    If you did refinance in the past there is still hope for you too! Rates are currently so extremely low that we have clients that have refinanced in 03, again in 07 and now again in 2010! If it makes sense to refinance then do it.

    If you are an active or retired military service member and have a VA loan on your home now then please consider the VA streamline refinance. Some of the benefits of this streamline refinance are:

    · No appraisal needed

    · No income or employment documentation needed

    · Fast processing times

    · No mortgage payment needed for the next two months

    · Save hundreds every month on your monthly payment

    Call Now to speak to a VA loan agent. There is no obligation and it will take no more than 2 minutes to see how much you can save.

    Tags: , , ,
    Posted in VA Loan, VA Refinance, VA Streamline Refinance | No Comments »

    « Older Entries