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Refinancing your VA Loan with New Day Financial

Friday, March 9th, 2012

New Day Financial VA Refinance

Veteran home owners in the market to refinance their existing VA home loan have many lender options and interest rates at an all-time low.  Veteran home owners interested in going with New Day Financial should understand that they may be able to get a better interest rate and less closing costs by going with an approved New Day Financial broker.

New Day Financial Brokers

Approved New Day Financial brokers are generally extremely qualified to help military families and understand the VA home industry.  New Day Financial provides thousands of home loans nationwide to military families.  Many of the New Day Financial brokers offer cheaper interest rates then going directly through their services.  New Day Financial offers “tier 1” or “wholesale” rates to brokers closing a large amount of loans.  The “wholesale” rates given to brokers are typically lower than the retail rate being offered directly through New Day Financial.

Many military home owners assume that home loan brokers will charge more closing costs and have higher interest rates.  This is definitely not the case.  On the contrary, many brokers actually offer lower interest rates then lenders and no additional closing costs.  It makes sense for New Day Financial to offer an incentive to a broker that can potential close thousands of loans and in turn help New Day Financial make money.

VA Streamline or VA Hybrid?

Right now veterans can refinance to a fixed 30 year loan at 3.75% or they can get in a five year VA hybrid loan for 2.75%.  Both loan options are the lowest they have been in the history of the VA home loan.  If veterans know they will be in their home for less than 10 years, the VA Hybrid is a great option.  Many veterans confuse the VA Hybrid loan with conventional adjustable home loans during the market crash.  The VA Hybrid is COMPLETELY different.  The VA Hybrid loan will stay fixed at the 2.75% rate for the first 5 years.  After that, the hybrid loan can ONLY move one percentage point per year.  However, the VA Hybrid rarely moves the full percentage point and can also move down is the market improves.

The fixed 30 year loan is idle for veterans looking to stay in their home long term.  If you have plans to stay longer than 15 years in your home you can refinance to 3.75% fixed 30 year loan.

Why Choose a VA Loan?

Many lenders may try to steer veterans away from VA home loans, but do not be swayed.  The VA loan is the best loan on the market right now and veteran’s homeowners are missing out on great benefits by looking into other loans.

VA home loans have many significant advantages over an FHA or conventional loan.  If veterans come across a broker or lender that is trying to get convince them otherwise, they would be wise to move onto another company.

Make sure your situation is Improving

Going to a lower interest rate does not always translate into the best financial decision.  With closing costs added to the loan the monthly savings needs to be enough so veterans can make their money back in a reasonable time frame.  If veterans are looking to stay in the home long term and make back the closing costs in less than 10 years typically its worth refinancing.  If veterans are unsure about their situation, please contact a VA loan officer at LowVARates.com or go to our live chat www.lowvarates.com for further assistance.

New Day Financial VA Refinance

As always veterans, make sure to check VA streamline rates through New Day Financial, LowVARates.com and other brokers and lenders to see which can offer you the best streamline refinance for your situation.

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VA Streamline with USAA

Thursday, February 23rd, 2012

USAA is an organization dedicated to helping veterans and military families take advantage of well-deserved benefits.  Since they specifically target veterans they typically have dealt with the common concerns and questions with VA home loans.  However, USAA also brokers out there loans to qualified VA approved lenders.  For veterans, it’s a huge advantage to have a lender or broker that understands VA home loans and assist military families on a daily basis.

USAA VA Streamline

VA Streamline & Cash out

Veteran homeowners can refinance their existing VA home loan with USAA and any of their qualified brokers.  A VA streamline is when a veteran already has a VA home loan and wants to refinance to a lower rate.  The VA streamline is one of the easiest refinances on the market and does not require an appraisal like many other loans.  If a veteran has a FHA or conventional loan and wants to refinance into a VA home loan they have to get a “cash out” refinance.  A cash out refinance is a little more complicated and does require an appraisal.  However, the VA streamline is designed to help veteran home owners take advantage of low interest rates and save hundreds of dollars every month.  With interest rates at an all-time low, veterans can refinance their existing VA loan at 3.75% for a fixed 30 year loan.  The 3.75% rate will not cost the veteran any additional costs and they will not have to buy down the rate.

USAA Brokers

Approved USAA brokers are generally extremely qualified to help military families and understand the VA home industry.  USAA provides thousands of home loans nationwide to military families.  Many of the USAA brokers offer cheaper interest rates then going directly through their services.  USAA offers “wholesale” or “tier 1” rates to brokers closing a large amount of loans.  The “wholesale” rates can be lower than the “retail” rates you will be offered going directly with USAA.

Many veteran home owners assume that home loan brokers will charge more closing costs and have higher interest rates.  This is false.  On the contrary, many brokers actually offer lower interest rates then lenders and no additional closing costs.  It makes sense for USAA to offer an incentive to a broker that can potential close thousands of loans and potentially make USAA a lot of cash.

VA Home Loan vs. Conventional Loan

Many lenders may try to steer veterans away from VA home loans, but do not be swayed.  The VA loan is the best loan on the market right now and veteran’s homeowners are missing out on great benefits by looking into other loans.

Here are some of the advantages of VA Home Loans:

  • No Appraisal on a refinance
  • Minimal credit requirements to refinance
  • On average, VA loan interest rates are about 0.5% lower than conventional
  • Only loan on the market to offer 100% financing
  • Easier to get approved for a VA loan than conventional
  • No PMI
  • Government backed and Guaranteed by the GI Bill

These are just a few of the benefits of going with a VA home loan over an FHA or conventional loan.  If veterans come across a broker or lender that is trying to get convince them otherwise, they would be wise to move onto another company.

Research Your Situation

Refinancing your loan is not always the best option for veteran homeowners.  There are many factors to take into consideration when deciding to streamline you currently VA loan.  If veterans are unsure about their situation, please contact a VA loan officer at LowVARates.com or go to our live chat www.lowvarates.com for further assistance.

USAA VA Streamline

As always veterans, make sure to check VA streamline rates through USAA, LowVARates.com and other brokers and lenders to see which can offer you the best streamline refinance for your situation.

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Is a GMAC VA Streamline the best deal?

Friday, February 17th, 2012

The VA streamline is currently the best loan option for veterans in the market to refinance their home loan.  Many veterans are currently in high interest rates and should be refinancing their current VA loans to a fixed 3.75% rate for 30 years.  With interest rates at an all-time low, now is the time to get locked into a low interest rate and save hundreds of dollars every month.  Many lenders, including GMAC, offer VA streamlines for veterans.  VA streamline means that a veteran home owner currently has a VA loan and is looking to refinance to a lower interest rate.  Since many lenders offer the VA streamline it’s important for veterans to research and understand credible lenders and brokers to assist them.

GMAC VA Streamline

A common misconception among veteran home owners is that home loan brokers will result in more closing costs and higher interest rates.  This is false.  On the contrary, many brokers actually offer lower interest rates then lenders and no additional closing costs.  Lenders like GMAC are willing and able to offer these brokers large discounts because of the volume of loans they are closing.

To bring the point home, let’s compare the lender and broker relationship to the home improvement store Home Depot.

Home Depot buys millions of dollars of hardware, appliances, paint, and other home improvement items from hundreds of companies across the nation.  Because Home Depot buys these items in bulk, the wholesale companies selling to Home Depot offer them a cheaper price range then someone only buying one item.  These wholesale companies give Home Depot a bulk discount since they buy so many items and understand the discount is well worth the company’s time to receive the business of Home Depot.  If someone directly contacted the wholesaler to get one item from them would they be paying less than at Home Depot? Not necessarily.  Since the customer would only be buying one item they would have to pay a higher rate and not qualify for the bulk discount that Home Depot receives.

The lender to broker situation is very similar.  Since many brokers close thousands of loans they offer bulk discounted rates because the discount is well worth it for the lender. The broker is providing the lender with a large amount of business and profit.  Consequently, going directly with the lender does not necessarily mean a veteran home owner will be getting the lowest interest rate on the market.

GMAC Approved Brokers

There are many brokers across the nation that are approved by GMAC.  Many of these brokers have access to the “wholesale” or “tier 1” rates.  These rates are typically better than going directly to the lender.  If a veteran goes directly to GMAC to refinance, they are not guaranteed to get the “wholesale” rate, but will typically receive the “retail” rate which will be a higher interest rate.  Just like our example with Home Depot, GMAC is forced to give higher rates to single customers, but can offer discounts through large brokers closing a large amount of loans.

How can veterans ensure they are getting the best deal and service?

Below are three things to take into consideration before going with a lender or broker.  These three things can make all the difference for veterans looking for a hassle free refinance.

1)      Go with a lender or broker that has experience with VA Loans

This sounds like a pretty simple statement, but many lenders are unfamiliar with VA loans and steer veterans into worse loans.  VA Loans are hands down the best loan on the market right now.  If any lender of broker says otherwise, they do not have experience working with VA loans.

2)      Research the difference between a fixed and hybrid loan

Typically when an adjustable loan is mentioned everyone cringes.  However, VA Hybrid loans have VERY different rules then the conventional adjustable loans that flooded the market 5-10 years ago. Many people don’t understand that the VA Hybrid loan is actually fixed for 5 years. For veterans who are very sure they will be in there current home for less than 10 years, the VA hybrid loan can be the best option.  Rates for VA Hybrid loans are as low a 2.75% and cannot raise more than one point per year after the first five fixed years.

3)      Sometimes the lowest interest rate is NOT the best option

Make sure to understand your break-even point when streamlining your VA loan.  Many times home owners assume the lowest interest rate is always the best option for them.  If a home owner is only going to be in a home for short amount of time, higher interest rates may be a better option.  Why? If the break-even point for a loan is 6 years with a 3.75% or 4 years with a 4.25% and the home owner is only going to be in the home for 5 years then the 4.25% interest rate is going to be a smarter loan for that situation.  The closing costs for a VA streamline are typically rolled into the loan and the monthly savings help offset the costs of the refinance.

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If you have any other questions or concerns about streamlining your current VA home loan, contact a loan officer at LowVARates.com for assistance.  They can help you understand the best loan for your situation.

GMAC VA Streamline

As always veterans, make sure to check VA Streamline rates through GMAC, LowVARates.com and other brokers and lenders to see which can offer you the best streamline refinance for your situation.

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VA Streamline with Bank of America

Tuesday, February 14th, 2012

With interest rates at an all-time low, veteran home owners should be looking to lower their home interest rate.  The current rates for a fixed 30 year VA home loan are around 3.75%.  The general rule is if the current interest rate you have is one point above the refinance rate it usually worth refinancing.

Bank of America VA Streamline

Many lenders, including Bank of America, offer veterans the opportunity to “streamline” their existing VA home loan.  A VA streamline basically means a veteran currently has a VA home loan and wants to refinance that VA loan to a lower interest rate.  If a veteran does not have a VA home loan and is looking to refinance into a VA loan that is referred to as a VA “cash out”.  The VA streamline loan is a VERY simple process and does not require an appraisal.  The VA cash out is a little more complicated and requires an appraisal.  Veterans that currently have a VA home loan and a high interest rate definitely should look into “streamlining” their rate and save thousands of dollars over the life of the loan.

Bank of America Brokers

Bank of America is a national lender that allows thousands of brokers to close deals for them.  When a broker closes a deal they pay the lender a commission on the loan and many times offer lower rates giving an incentive for brokers to close more loans.   A broker that closes thousands of loans for Bank of America can qualify for the “wholesale” rates.  Many times these interest rates are better than the actual rates offered by the bank.

Why does Bank of America do this?  The answer is pretty simple.  They understand that giving lower rates to brokers gives the broker companies incentive to close more loans and consequently padding Bank of America’s pockets.  This kind of business ends up being a win-win situation for the broker, military homeowner and bank.  The home owners get lower interest rates, the broker is able to offer discounted pricing while making a commission and the bank is able to make money on the refinance.

Where should I get my VA Streamline?

Many lenders nationwide have the ability to streamline your VA loan.  However, many lenders and brokers rarely deal with VA home loans and can lack the expertise needed to close these loans.  There are brokers (Ex. LowVARates.com) that specialize in VA home loans.  VA home loans have different requirements and regulations then a conventional or FHA loan.  If the lender or broker does not have experience closing these loans veterans can get stuck in a messy situation.  It’s important to go with a company that has dealt with veterans before and understands the ins and outs of VA home loans.

VA Approved Lenders

Thousands of brokers and lenders across the nation are approved VA lenders. The VA DOES NOT close loans, but approves or allows brokers and lenders to process these loans.  Just because a lender or broker is “approved” does NOT mean the lender has experience closing VA home loans.  Veterans, make sure to do your home work on the lender and find out if they have experience working with VA home loans.

Here are some of the questions you can ask the lender and loan officer:

1) Have you ever worked with someone with a VA home loan?

a.       If yes, ask how many they have worked with. If no, move on to another lender.

2) What is the difference between a VA home loan and conventional loan?

a.       If they say there is no difference they typically have never dealt with a VA loan

3) I have a VA home loan, would you suggest me staying with a VA loan?

a.       If the lender looks to steer you away from your VA loan DO NOT listen.  VA Loans are better loans, but some lenders do not work with them or  are unwilling to put in extra work and will try to steer you to another loan.

It’s important for veterans to feel comfortable and have confidence in the lender they choose.  There are thousands of lenders, but many lenders and brokers are not comfortable dealing with a VA streamline.

Bank of America VA Streamline

As always veterans, make sure to check VA Streamline rates through Bank of America, LowVARates.com and other brokers and lenders to see which can offer you the best streamline refinance for your situation.

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VA Streamline with broker vs. U.S. Bank

Thursday, February 9th, 2012

Typically when home owners think of using a broker to refinance their loan they instantly assume there are additional fees and higher interest rates then going directly through the lender.  However, this is not usually the case.  Veteran homeowners usually will save additional money going with a broker then directly getting a streamline with U.S. Bank or other lenders.  Here are four typical questions and concerns military homeowners have when looking to refinance their VA home loan.

U.S. Bank VA Streamline Refinance

1. Are brokers typically more expensive than going directly with the lender?

The simple answer is NO.  This is a misconception that has existing among home owners for the past several decades.  Many lenders, like U.S. Bank, give brokers better deals and interest rates than what they are actually offering.   If a veteran walks into U.S. Bank today looking to refinance a VA Loan there is a very good chance the home owner will come out of pocket more money than going with a broker.

2. Do I have more closing fees going through a broker?

The bank will cover the closing costs associated with adding a third party (or broker) in on the loan.  So the home owner DOES NOT come out of pocket any additional fees to refinance with a broker.  So how does the broker make money?  If a broker for U.S. Bank closes a loan, U.S. Bank will give the broker a commission on the refinance.  This means the BANK pays for the broker NOT the home owner.  Banks are more than happy to give brokers discounts and commissions because ultimately any refinance can be financially beneficial for the bank.

3. Are the interest rates with the direct lender always better?

This is another HUGE misconception associated with refinancing with a broker.  In fact, many times the rates are better with a broker then going directly with the lender.  Once again, because many brokers close thousands of loans they are given “wholesale” rates which are typically better than the rate through the actual lender.  How are they able to do this? Brokers that are converting thousands of dollars of loans qualify for what lenders describe as “wholesale” rates which are much better interest rates then going directly with the lender or the “retail rates”.

4. Is the customer service with a broker significantly worse than a lender?

Lenders like U.S. Bank have multiple functions and refinancing home loans is only a small part of its overall business.  VA Home loan brokers are 100% dedicated to helping military families  get refinanced and do not carry the load of other business functions.  Because of this, brokers are able to dedicate more personnel and time to refinancing a VA home loan then a bank would be able to do.  In fact, many brokers specialize in specific types of home loans (Ex. VA, FHA), giving them an unmatched expertise over going directly with a lender.  Many loan officers associated with banks have never dealt with a VA home loan and may attempt to steer military homeowners into an inferior loan.  Because lenders have multiple functions it is basically impossible for them to dedicate the amount of resources needed to provide better service then a broker.

After analyzing the information, it’s important to realize that lenders like U.S. Bank are not always a bad option to refinance your VA home loan.  However, the misconceptions about brokers sometimes blind veteran home owners into worse interest rates and more costs.  Knowing the truth behind these four questions can help veteran home owners make an educated decision when deciding to streamline their VA home loan.

U.S. Bank VA Streamline Refinance

As always veterans, make sure to check VA Streamline rates through U.S. Bank, LowVARates.com and other brokers to see which can offer you the best streamline for your situation.

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The Walmart Priced VA Streamline with Chase Bank

Friday, February 3rd, 2012

Many veterans think going directly to the source to refinance their VA home loan will guarantee they will receive the lowest interest rate on the market.  This is not always the case.  Lenders are willing to give broker loan companies wholesale or cheaper pricing because of the amount of loans the lender closes.  Companies like Chase can afford to give a broker closing hundreds of loans a lower interest rate then they can give one person walking into the bank looking to lower their rate.  This provides a great opportunity for veteran home owners to take advantage of lower interest rates then they can get directly from the lender. To further emphasis the point, let’s compare Chase giving discounted rates to brokers to buying an item at Walmart.

Chase Bank VA Streamline Loan

Walmart purchases thousands and thousands of dollars of product from companies all over the world.  If someone enters a Walmart store today to buy a box of Lucky Charms for $3 would be cheaper than going directly to General Mills and purchasing that box of Lucky Charms.  Why?  Because Walmart buys thousands to millions of dollars of product from General Mills so they offer major discounted prices to Walmart.  If you decided to go buy one box of Lucky Charms through General Mills the cost of the box of cereal and the time it would take you to get that box of cereal would make purchasing the item through Walmart an obvious choice.

The same concepts apply to refinancing your VA home loan.  If a veteran walked into Chase Bank today to refinance his home loan, there is a good chance the interest rate they offer would be higher than going with a broker approved by Chase. Why?  Brokers closing hundreds to thousands of loans are given discounted pricing giving the consumer a better interest rate.

Owner of LowVARates.com, Eric Kandell, has been in the VA mortgage industry since 1997 and understands brokers can offer wholesale rates.

“When we show some of the representatives at various banks the wholesale rates we are able to receive, most of the time they tell us they are unable to compete with those rates,” Kandell said.

Chase and other banks still have the capability to refinance your home loan through one of their branches or offices.  As a consumer if you refinanced through one of Chase’s offices that would be considered dealing with a “retail channel.”  A retail location would basically be the Chase Bank in your local town. If you were to call Chase Bank today you would have access to their “retail rates”.  However, if you contact a Chase broker you would have access to their “wholesale rates”.

Giving brokers the discounted or “wholesale” rate, makes perfect sense for both the broker and the bank, just like it makes sense for General Mills to offer Lucky Charms at a discounted rate to Walmart.  Chase understands that brokers, like LowVARates.com, can close thousands of loans nationwide and make them more money than trying to ONLY sell loans directly through them.

Veterans and military families with high interest rates should make sure to check there options to ensure they are making the best financial decision for their families.  With rates at historic lows, many veterans can be lowering their monthly payments hundreds of dollars per month and save thousands of dollars over the life of the loan.

Chase Bank VA Streamline Loan

Make sure to check VA Streamline rates through Chase Bank, LowVARates.com and other brokers to see which can offer you the best streamline for your situation.

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VA Streamline Refinance with no FICO requirement or appraisal

Tuesday, October 25th, 2011

LowVARates.com a Division of Flagship Financial is one of only a few lenders in the nation allowing veterans home owners to refinance a VA home loan without an appraisal, AVM (Automated Value Method) or FICO score requirement.

Other lenders are tying down potential refinances by requiring costly appraisals and hefty credit score requirements making it nearly impossible for borrowers with bad credit or lost home equity to refinance.

LowVARates.com has relationships with lenders that are willing and able to refinance existing VA home loans without any of these requirements.*

“We have a very unique situation where we are basically able to refinance any veteran with a VA home loan,” Owner of LowVARates.com, Eric Kandell said. “With the rates as low as they are right now we have helped hundreds to thousands of veterans with subpar credit get locked in at lower interest rates.”

Many borrowers have even tried to refinance with their current lenders, but are still unable to meet the FICO requirements and forced to stay at higher rates in a poor economy.

Home appraisals have always been a standard procedure for veterans looking to purchase or refinance their home.  However, LowVARates.com does not require an appraisal to refinance an existing VA loan saving the borrower typically about $400-$500.

With the unique ability to refinance loans with no FICO score or appraisal, LowVARates.com is required to lock loans in a pool forcing many of these loans to wait to have their interest rate locked.

Because the loans are locked in a pool, LowVARates.com is maneuvering a massive amount of loans through a very small window. Because the rates are so low, thousands of people want to lower their rate and save money.  When the lender pool is filled LowVARates.com is unable to lock new loans until the new pool of loans is funded.

The consequence is that many borrowers may have intended to get a certain rate at a certain cost, but because the pool was full, the borrower is pushed back and unable to lock in the interest rate.  This can cause the interest rates and cost to change on a VA streamline before the loan is processed.

“Most of our current clients are unable to refinance through other outlets and we are doing everything we can to help them,” Kandell said.  “We are attempting to funnel through as many loans as we possibly can sometimes causing our pool of loans to be filled.”

However, potential borrowers are never tied into doing a loan. LowVARates.com compensation on the loan does not change regardless of the costs or interest rates. This puts LowVARates.com in a great situation to advocate for borrowers to help every potential borrower get the best possible interest rate.

“Potential borrowers should understand they still have control over what they want to do.” Kandell said. “When lenders come back and offer a different rate they have the right to take the current rate offered or wait the market out to see if the rates drop again.”

Borrowers not locking their interest rates do run the risk the market will change and the rates can rise.  There is no way to predict what the interest rates will be the next day, week or month.  Interest rates can be very volatile and there are never any guarantees for borrowers that have not locked their loan.

For those borrowers that find themselves in this situation, the increase in closing costs is usually around $1,000 -$3,000 and those costs are able to be rolled into the loan typically only increasing the loan $3- $7 per month.  LowVARates.com guarantees it will provide the best interest rate available to borrowers looking to refinance.

With this situation LowVARates.com remains one of a very small number of lenders that is able to help veterans with lower FICO scores and refinances without an appraisal.  Thousands of veterans are finally able to lower their rate and save hundreds of dollars every month.

The current rates for a 30 year fixed loan are around 3.75% right now and continue to hit record lows.  For veterans stuck in higher interest rates now is the time to refinance and save some cash.

* Though LowVARates does not require a minimum FICO score, they will look at the overall ability of the Veteran to make timely mortgage payments and may decide to not offer a loan if someone has had 30 day late mortgage payments in the recent past, has had a short sale or foreclosures or other extreme credit issues.  The score if not needed, but the history tells a lot about the home owners ability to make their new mortgage payments.

** Flagship Financial Group, LLC is licensed as: NMLS No. 3133; Alaska Mortgagee Licensee #100278; Arizona Banker 0908193; Department of Corporations under the California Residential Mortgage Lending act Lender 413 0854; Florida Correspondent Lender CL 0703188; Georgia Mortgage Broker Licensee 17297 – 3130 W Maple Loop Dr, #200, Lehi, UT 84043 (GA); Illinois Residential Mortgage Licensee MB6760204; Kansas Licensed Mortgage Company, License No. MC.0001780; Maine Mortgage Lender License# SLM9424; Maryland Mortgage Lender 16461, Mississippi Supervised Mortgage Company 308/2006; Nevada Mortgage Broker 1385 – 1349 Galleria Dr., #110, Henderson, NV 89014; New Hampshire Banking Department Mortgage Broker 13439- MBR; North Dakota Money Broker MB101563; Oregon ML-2543; Licensed by the Pennsylvania Department of Banking (PA); Utah Mortgage Loan Company 5493106; Licensed by the Virginia State Corporation Commission, License MC-2980. In certain states in which we do conduct business, certain restrictions and limitations apply. Rates and terms subject to change. If you have any questions or comments regarding this offer please email to lharris@ffgcorporate.com.

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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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How to shop for the best VA streamline deal among lenders

Monday, July 25th, 2011

Lately, it seems more and more VA home owners (people with VA home loans from the Dept of Veterans Affairs) are shopping around and getting lenders to compete for their loans.  This is a very good sign on the surface and I am glad to see a more educated home owner than in years past.

Unfortunately, however, there are lenders out there who know how to trick our Veterans into thinking they are getting the best deal, when in all reality, they are not!  I am hopeful that this blog post will shed some light and make the consumer (our military home owners or even buyers) more intelligent and ready to shop for the best VA Streamline Rate as possible.

This short video will sum up the rest of my blog post so feel free to watch it.

You need to understand some key terms first:

consumer paid vs lender paid- Since April 2011, it is illegal for a loan originator to make money on a loan from charging the borrower an origination fee or charge and having compensation directly from the lender.  A loan officer can charge you origination charges and have you pay him/her for doing the loan or the lender can pay the loan officer and he/she will charge you nothing

origination fees- Any fee paid to the lender or the originator by the borrower. Normally the 1% origination fee charged by the loan officer and then any underwriting or processing fees.

discount points- fees paid for by the home owner to buy down to a lower than market interest rate.  VA loans can allow for up to 2 discount points or 2% to be paid by the Veteran

3rd party fees-These fees are on every loan and have to be paid for by the borrower on all Lender Paid transactions.  Do not be fooled, if you are told there are no 3rd party fees or do not see fees like, title insurance, title exam, escrow, notary, signing, tax, stamps etc then run for the hills; you are dealing with Mr. Shady!

pre-paids and escrows/impounds- All VA loans will require an escrow account be set up and pre-funded at the time of closing.  In addition to having an escrow account cost associated with your loan, you will also see pre-paid interest on your loan.

APR- Annual percentage rate. The annual rate that is charged for borrowing expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.

Good Faith Estimate- The form given to you where all origination fees, 3rd party fees, and prepaid interest and escrows are broken down for your viewing and research.
The best way to ensure you are getting the absolute best possible deal on your VA streamline loan is to compare the APR of all of your offers and also the ADJUSTED ORIGINATION CHARGE!  The video above explains this a bit better, however just ask your loan officer to indicate very visibly on your forms or paperwork, what your adjusted origination charge is.  The lower the adjusted origination charge, the cheaper the cost of that loan.

If you are shopping a loan here at Low VA Rates, we invite you to challenge us to our $250 lowest APR guarantee.  We will gladly pay you $250 if we cannot beat the best deal you can find.

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Veterans Beware of VA streamline sales tricks

Monday, July 18th, 2011

As a branch manager here at Low VA Rates, a division of Flagship Financial Group, I constantly talk to Veteran or military home owners who are skeptical about VA streamline offers they are getting in the mail, on the internet, over the phone and even some in their home from a live person.  In many cases the information being given or received is legit, clear and straightforward.  Unfortunately, we do sometimes hear about information that is being shared from a loan officer, telemarketer, or other bank employee that is not completely true and at times, down right illegal!

I hope to be able to share today some tips or tricks for anyone looking to refinance a VA loan via the VA streamline loan program so that regardless of who you are using or intend to use, you can feel a bit better about what you are being told.  Here are the basic facts about a VA streamline loan that pretty much all marketing pieces you get or see will outline:

  • No appraisal (true by VA rules, but most lenders will require one.  Low VA Rates does NOT require one)
  • No credit score minimum (true by VA rules but almost always each bank/lender will want some sort of minimum) Low VA Rates is case by case and has approved below 550 FICO scores on a VA streamline.
  • No employment/income verification needed. (again true by VA) We will want to make sure you are employed or receive disability or SS or something.
  • We have been told Mortgage Investors Corporation or MIC regularly requires money out of pocket or upfront.  Again, this is allowed, but we do not see any need to do this.

Now here are some tricks or things to use to try and discover if someone is being deceptive or planning a bait and switch:

  • If the lender wants money upfront or out of pocket at the time of application. (VA does not require this and there is no reason for it) If you are being asked for money or a deposit up front, history has shown this is almost always a sign of bad things to come.
  • If the lender tells you they can close you in 5-7 days this is almost always to lure you in.  Can loans close that fast?  Yes, but normally speaking it is not possible.

The VA streamline loan is by far the most popular loan around today for Veterans and military home owners.  You of course, have to have a VA loan now to take advantage of this VA IRRRL or Interest Rate Reduction Refinance Loan.  Please apply on our site or give us a call if you have any questions.  We look forward to assisting you.

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Posted in General Veteran Information, VA Refinance, VA Streamline Refinance | No Comments »

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