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Archive for the ‘VA Refinance’ Category

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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 »

VA IRRRL Rates Hit 4.25% And Save You Money!

Tuesday, March 22nd, 2011

Home loans are constantly being defaulted on. However, there is veteran assistance that no other American can benefit from. Serving your country made you a veteran and now the government is rewarding you by offering you a VA IRRRL. An IRRRL is an interest rate reduction refinancing loan, otherwise known as a streamline mortgage loan.

These IRRRL loans are only valid if you currently have a mortgage that’s been financed through the VA and if the VA interest rate on your home is currently over 5%. There is a great opportunity to save a significant amount of money because VA IRRRL rates are hitting 4.25%. These rates are permanent, low fixed rates, ensuring that you save money permanently, not just while the market is down.

There are tons of banks offering refinancing loans. The different is that this one is specifically designed for VA loans. It is a permanent change in your interest rate. Others will still offer a variable rate that means you’ll get great rates now but may suffer significantly if the market turns around.

The streamline mortgage can save you hundreds of dollars. The higher your loan is, the more you can potentially save from this loan. For every 1% in interest rate reduction, you can save between $100 and `0 every single month. Whether your current interest rate is fixed or variable, you can save money from this loan because the federal government is trying to turn the economy around, starting with their veterans.

Often, a refinancing loan costs you money out of pocket. Closing costs and pre-paids are something that you have to shell out to save money in the long run, often outweighing the initial reason to refinance. There streamline VA IRRRL loans however require no cash up front. All of the involved costs can be added to the refinanced loan, making it extremely easy to get these loans. The application process is simple and easy to qualify for.

Saving money on your mortgage has never been so easy. When much of America has felt the results of the housing market, causing mortgages to be under water. You then have the problem of paying on a mortgage that’s more than what your house is actually worth. Qualifying for a loan that can save you hundreds of dollars will make this a whole lot easier to swallow.

Check out the VA IRRRL loans while the rates are still super low so that you can save hundreds of dollars. Then, you’ll have the extra money you’ve been looking for to take care of everything else that’s going on in your life.

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Can A VA Streamline Mortgage Save You Money?

Thursday, March 17th, 2011

There is a refinance program currently being offered by the Department of Veteran Affairs. If you currently have a VA mortgage loan, then you may qualify for the VA Streamline loan for veterans. Whether you’re in active duty or previously served in the military, you’re VA mortgage is offering relief.

Saving money has never been so easy. You’ve served your country and are a veteran – so why not cash in on the benefits of being one?

In today’s economy, the government is actively trying to get everyone back on the right path. If the mortgages across the country can be repaired, then the economy begins to improve. The VA streamline loan for veterans is an interest rate reduction loan. It’s not only simple, but easy to qualify for. It’s the best mortgage refinance option available on the market – if you are a veteran.

Look around at other refinancing options. You’ll learn that you’re responsible for a fair amount of fees involved with refinancing, and often, the rate will still be adjustable, meaning that your significant savings could be short-term.

If you are currently paying an interest rate of 5% or higher, than this is definitely a loan you should consider. Whether you currently have an adjustable rate or a fixed rate mortgage with a VA loan, you can qualify for this new loan. The rates for this loan are at an all-time low and can save you hundreds of dollars every month. Plus, it’s a permanent, low fixed rate, so you’re locked in to the great rate without worrying that it could go up.

By saving money on your mortgage, you can spend your hard-earned money on other things. Paying off other bills will mean that you’re not paying so much interest, which will in turn help you save even more money. Ultimately, if everyone is able to get back on their feet, then the economy turns around. A streamline mortgage is your best option for improving your personal finances.

The loan on your home and its current value can vary quite a bit. A 1% decrease in your interest rate can save you anywhere between $100 and $600 every single month, without spending any money tout-of-pocket. Closing costs and pre-paid points can all be rolled into the new loan amount. You can even get your current escrow account credited back to you.

A VA streamline mortgage can be just the thing you’ve been looking for to save you money. Not just a little money, but a significant amount. When there’s no money required from you, saving hundreds of dollars every month can have a dramatic impact on your overall financial liquidity and thus, your lifestyle.

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The Process of Getting a VA Loan

Tuesday, March 15th, 2011

The process of getting a VA loan can be a simple one. We’ve broken it down into 8 steps so it can be as painless as possible for you. The infographic below helps you see how quick and easy it can be, and how we can help get you through that process from start to finish. Have questions, please give us a call or simply leave a comment and we’ll get back to you.

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How To Get A VA Home Loan
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Posted in General Veteran Information, Loan Processing, VA Loan, VA Purchase, VA Refinance | No Comments »

VA Home Improvement Loans

Monday, March 7th, 2011

A question that seems to come up quite often is, “Can I use the VA loan to do home improvements?” Many people ask if they can take out a loan that is a little bit larger than what their house is worth to cover costs for upgrades or things that just need fixing. Well the answer is yes! Many people are unaware that this is even a possibility. Veterans can use the VA Home Improvement Loan to improve an existing home.

This really is not a loan, but more of a guarantee. The VA puts a guarantee on the loan, protecting the lender, just in case the borrower defaults. The VA does not actually lend the money. The lender does this. Due to this guarantee, the lender is able to offer better rates.

Some of the benefits to this type of loan include no down payment, better interest rates, no prepayment penalties, and an easier qualification process. This process is very similar to that of a VA loan.

There are two types of upgrades that can be covered by the VA loan. The first are energy-efficient upgrades. For example, you could put in new heating and cooling systems to improve the energy efficiency of your home. Improving insulation in your house is also another way to do this. Some restrictions do apply though. You can only borrow up to $3,000 before you have to prove that these improvements are reducing your utility bills. If it is less than that, then you only need to provide the receipts of the improvements. You can, however borrower up to $6,000 without having to have an appraisal on the house.

The VA Home Improvement Loan can also be used for other improvements, but you cannot borrow more than 90% of the home’s equity. This way you end up with cash back allowing you to proceed with the necessary upgrades to your home. You as the veteran then get to decide what you want to do with that money. You can get a new roof, fix your plumbing, or maybe add a garage to your house.

The advantage to this type of loan is that these improvements just increase the equity of your home. So make your that you talk to a lender that specializes in VA loans soon and don’t keep putting off the repairs that your home needs! If you are qualified, this type of loan can only improve that value of your house and make you happier to live in it!

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Top 3 Reasons to use a VA Hybrid Loan on your next Purchase or Refinance:

Tuesday, February 8th, 2011

A VA hybrid adjustable mortgage, or VA hybrid ARM, is a mortgage loan with an interest rate that is fixed, which means the loan amount stays consistent, after an initial period and then acts adjusts annually after the initial fixed period, like an adjustable rate mortgage, or an ARM. An adjustable rate mortgage is a loan where the interest rate adjusts based on indexes or prime rates. Lender often set a cap for how high the interest rate can reach annually. Hybrid ARM loans hybrids together both a fixed rate and an adjustable rate mortgage. Also unlike an ARM, VA Hybrid ARM adjust only once a year and are tied to a financial index that averages rate changes over a twelve month period so as not to subject the borrower to wild payment swings, except for the first adjustment which may occur no sooner than 36 months from the date of the borrower’s first mortgage payment on 3/1 ARM or 60 months from the date of the borrower’s first payment on the 5/1 ARM. The cap on the interest rate is 5% for VA hybrid AMR.

There are several different terms for a hybrid ARM. Hybrid ARM term is referred to first by the fixed amount rate and than the adjustable amount rate periods. For example hybrid ARM 3/1 is a fixed mortgage rate for 3 years and an adjustable rate for 1 year. The date the fixed rate switched to the adjustable rate is known as a reset date. A Hybrid ARM transfers some interest rate risk from the lender to the borrower allowing for lower interest rates. The usual Hybrid ARM rates are 3/1, three years fixed rate and 5/1, with a five year fixed rate. These rates are usually 30 year programs.

There are many advantages to a VA hybrid loans. Here are the top three reasons:

  1. VA Hybrids are the best of both worlds, getting a fixed rate at first but than later having more flexibility with the adjustable rate. If you cannot decided between which kind of loan to get, get both! Hybrids are great if you feel that rates will be lower in next couple of years, since you have a fixed rate at first when rates that is usually 1-2% lower than a fixed rate and then the loan amount will adjust to a possible lower rate. Since there is a cap in place from the lender, the rates during the adjustable period will cannot be higher than 1%. Also if you know that you will be making more money in the next couple of years, like if a borrower is in school, a hybrid in another great option.
  2. VA Hybrids are particularly great if a borrower will not be staying in their home long. Since you can get lower interest rate for hybrids, a borrower can buy a home at a lower interest rate with a hybrid and then sell it before the rate becomes adjustable. The VA hybrid loan typically an initial start rate of 1-% lower than the going 30 year fixed rate. This can amount to an extra $100 to $200 a month in savings and if you will not be in your home long, you will never have to worry about rates fluctuating.
  3. VA Interest rates are also lower for an ARM, so it is easier to borrower more. This can help first-time homebuyers afford a larger home.

There are many great benefits that come from having a hybrid VA loan and this option should be looked at by anyone wanting to purchase or refinance their home.

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Pros and Cons of the VA Hybrid Loan

Thursday, January 27th, 2011

The current economic downturn has put many homeowners in financial hardship. With many people being financially strapped, a good question to ask is whether or not the VA Hybrid loan is a good option for saving money.

A VA hybrid ARM is a combination of an adjustable rate mortgage (ARM) and a fixed rate mortgage. The introductory rate period is fixed, usually for 3, 5, 7, or 10 years of the loan. Generally the shorter the fixed rate period chosen, the lower the rate. After the introductory period is over the adjustable rate begins.  After this period the rate can only adjust every 12 months and there are adjustment rate caps that protect the borrower from the rate jumping too high right off the bat. There are also lifetime caps of 5% so that the loan will never exceed their fixed rate plus 5%.

Many veterans might be uncertain about this type of loan because of what may happen with interest rates in the future. While it is good to be cautious, present financial issues may be more important than future costs. This loan allows for monthly savings right now, which could allow for savings later as well. There are pros and cons to every loan option. Borrowers must look at each side and decide which the right alternative is for them and their current situation.

There are a few disadvantages to keep in mind. If the interest rates skyrocket after the introductory period, the borrower could end up paying a considerably larger interest rate over the term of the loan. On the other hand, if the borrower chooses a long fixed rate period and the market’s interest rates lower, then they will end up stuck in their high fixed rate. It can go both ways. The borrower has to accept the interest rate risk after the fixed rate period.

However, there are definitely some advantages to the hybrid ARM! First of all the borrower will  gets a guaranteed fixed rate for the first 3 to 5 years, or however long they opt for. Then after that the rate can only adjust every 12 months, and keep in mind that the rate can go down during this time as well! Many homeowners may choose this option for a loan because it hardly makes sense to pay for a fixed rate for thirty years when they will mostly likely be out of their homes and loans before then anyway. If the borrower is looking for a jumbo loan, an ARM is probably the best choice for them. It will offer them substantial savings over a thirty year loan because the rates are normally quite a bit higher, while jumbo hybrid ARM rates are generally much lower.

VA Hybrid ARMs offer safety and savings that seem to be too hard to pass up. Yet, borrowers still need to decide if they need to weigh their options and decide which loan option is the best for them.

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Posted in VA Loan, VA Refinance, VA Streamline Refinance, va hybrid arm, va interest rates | 1 Comment »

Top 3 Reasons to Use a VA Hybrid Loan on Your Next Refinance

Friday, January 14th, 2011

The VA Streamline Loan is one of the most popular refinances right now due to its ease and the benefits that can be received through it. Not only can the veteran basically avoid jumping through all of the hoops that come along with obtaining a loan, but here are just some of the benefits that a streamline offers: no appraisal, an optional down payment, lenient credit requirements, no income verification, the possibility of deferring two months payments, and the possibility of getting an escrow refund of the money that is in the escrow account when the loan is paid off.

Now these benefits do depend on what lender you work with. The VA sets all of the rules in place, but since it is the lender that is lending the money and the VA is only guaranteeing the loan, the lender can determine if they wish an appraisal or a certain credit score is required.

The VA Hybrid loan is becoming more and more widely used for VA refinances now. Now hearing the word hybrid, you may think of a car. It’s actually the same idea. Just as the car combines gas and electric, the hybrid loan combines an adjustable rate mortgage (ARM) and a fixed rate mortgage. The VA took the best of each loan and made this one! Most veterans lifestyles requires them to move frequently and are not able to remain in their home for the duration of their entire 30 year fixed rate mortgage, so that type of loan was not working out the best for them.

Hybrid loans are a combination of a fixed rate and an adjustable rate mortgage. The introductory rate period is fixed, generally for a period of 3, 5, 7, or 10 years of the loan, with the lowest interest rate usually coming with the 3 or 5-year option. After the introductory period is over the adjustable rate begins. Studies show that many home owners only stay in their homes for 7 to 10 years, so a hybrid loan allows these buyers to take advantage of the very low rates in those first few years of their mortgages. After the adjustable rate begins, the rate can only adjust every 12 months and it can only adjust up to a max of 1% up or down per year, with a lifetime cap of 5%.

There are many benefits to this combination loan. Here are the main three:

  1. 1. LOWER INTEREST RATE DURING FIXED PERIOD

One of the main reasons people choose a hybrid loan is for the lower interest rates going into the loan. Hybrid loans typically have an initial start rate of 1-2% lower than that of a 30 year fixed rate. This can lead to savings of $100-200 monthly! The 3 and 5-year options tend to have the lowest rates. These rates are guaranteed fixed for the set option you choose (3, 5, 7, or 10), which is a considerable amount of time.

  1. 2. ADJUSTABLE RATES CAN DECREASE IN A DECLINING INTEREST RATE MARKET

When the borrower’s introductory rate is over, and the rates are lower than what your fixed rate was at then your rate gets even better during that time. This would reduce the payment even more and can save the borrower even more money!

  1. 3. FLEXIBILITY TO END THE LOAN

This may be one of the largest benefits of the loan. The borrower can enjoy all of the benefits of this loan, but avoid a possible rising interest rate. As mentioned before, most veterans and regular homeowners are not in their home for a full 30-year term. Most choose to take out this type of loan and terminate it by refinancing or selling (if they are moving) at the end of the fixed term. This is one of the main reasons they choose a hybrid over any other type of loan.

Of course there are a few drawbacks, but there are to every loan. The rate could jump up and then the borrower would be stuck paying a higher rate, but also as stated before there is an option to refinance and terminate the loan.

VA Hybrid loans offer savings and safety that many veterans are taking advantage of already.

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Common VA Streamline Questions

Thursday, December 16th, 2010

Common VA Streamline Questions:

What is the difference between a VA streamline vs. a normal refinance?

The difference between a VA streamline and other refinances has to do with the qualifications as well as the documents required to qualify. For a normal refinance, you must qualify for the loan and provide all of your income, banking, credit, and liability information as well as an appraisal. Typically the loan cost will be higher than a VA streamline refinance. The VA streamline is a very quick and non-stressful process.

Historically interest rates on a VA loan have never been this low before.

With the way the market currently is,VA interest rates are at an all time low.  With government funding and other factors many people predict that lower rates not to last much longer.  Most investors think that it is wise to hedge the risk of rates going back up and take advantage of the refinance now.

How long does a VA streamline refinance take?

The VA streamline process normally only takes 3-4 weeks. This will vary dependant on the conditions that the lenders ask us for and the cooperation of the borrower.

What is a VA streamline refinance loan?

VA streamline refinance is simply a mortgage refinance of an existing VA loan with limited amount of documentation and qualifications thereby “streamlining” the loan process.

What does a VA streamline cost?

With the VA streamline there are no out of pocket costs, meaning that the borrower doesn’t have to bring anything to the table at closing.  All the costs associated with doing the loan are rolled back into the loan itself.  Making it easier for the veteran to afford the refinance and easier to pay off the house faster.

What are the other benefits of the VA streamline?

Besides being an easy and non stressful process, the VA streamline allows the borrower to defer two payments after closing, and also replaces the escrow account refunding the old one to the borrower making it easier to pay off other debt that they might have.

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Benefits of a VA streamline refinance

Tuesday, November 9th, 2010

The VA Streamline refinance home loan is without a doubt the best mortgage refinance loan on the market. No other refinance loan program is as simple and easy to qualify for and there are so many unique benefits that come along with it. Although, In order to do a VA Streamline refinance, your current loan must be a VA home loan.

One of the biggest benefits of the VA Streamline refinance is that you do not have to go through credit qualification.  There is absolutely no need for lenders to pull your credit history and look at your scores. However, your existing mortgage must be current and you cannot have had any more than one thirty- day late mortgage payment within the last 12 months. In order to do a VA Streamline refinance, your current loan must be a VA home loan.

Another benefit is that the regular underwriting process does not apply. Your lender is not going to check to see how much money you make. So you do not need to send in bank statements, W2’s, paychecks, etc. Since you have been making your mortgage payments, they know that you have the means to keep it up. Along with this, lenders are not going to be calling your employer to make sure that you are still working with them before considering giving you a loan. With a VA Streamline refinance a income verification is no issue to you at all, since they will not be doing that.

VA Streamline refinances in most cases can allow you to arrange your refinance to be completed with absolutely no out of pocket expenses. All of the closing costs and pre-paid can be rolled into the new loan amount and on top of that there is no appraisal required. As you can see there are so many unique benefits of a VA Streamline refinance as listed above, if it sounds like this is for you, take advantage of this amazing opportunity.

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