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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 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 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 »

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 »

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

How VA loans can put money in your pocket

Wednesday, November 3rd, 2010

Have you recently looked into your wallet and noticed there is less money in there? No not because your teenagers are cleaning you out but because the economy and times in general are just tougher. Well because of this situation and the current market for homes and interest rates, it may be the time you have waited for to refinance, using the VA’s VA Streamline IRRRL loan. IRRRL stands for Interest Rate Reduction Refinance Loan. This is not a new program; the VA has offered it for years and years. Because interest rates are so low right now, many people are finally getting around to it and in some cases taking advantage of the program again from just a couple years ago.

Let’s look at the program.

The VA allows for current VA mortgage holders in good standing, those who have been current on their payments for 12 months, and those who have had the loan for less than 12 months can still qualify, just have to meet qualifications that include that the refinance is beneficial to the borrower.

Commonly having a second mortgage or home equity line of credit (HELOC) make the process more difficult but not necessarily impossible. You see because these liens are subordinate to the current first mortgage- the VA loan- the lien holder on the 2nd or HELOC has to agree to remain in a second lien position when the VA loan is refinanced. This is called subordination. Most companies agree to subordinate to the new VA first mortgage.

Ok so let’s continue to look at how the refinance can put cash in your pocket. As part of the refinance process the current VA loan servicer, the company that the payments are made to now, will be paid off. When that loan is paid off, the interest that is due on a payoff is included. So commonly, there are two months in which the veteran/homeowner will not have to make payments, they are simply deferred. That frees up two months worth of current house payments, in some cases like with larger loans that could free up $5000 or more.

Next, as part of that payoff to the current servicer, they are no longer able or required to pay out escrows, tax and insurance payments, on the loan. So they will return whatever is left in the escrow account when the higher refinanced loan is paid off. The new loan includes those prepaid taxes and insurance built into the loan so when the new payment comes due, there are already taxes and insurance built into the account for when they are due later that year.

So let me give you an example with actual numbers. I have a client where the current monthly payment on their 6.25% loan is $1956. They will not have to make that payment for the next two months, since the interest is included in the payoff, so $1956 x 2= $3912. Then the escrows refund is $4623. So $3912 + $4623=$8535 cash in their pocket from the VA streamline rate reduction refinance.

You can see how easy it is to put money in your pocket from taking advantage of the VA refinance program. Oh yeah don’t forget this example above, not only are they putting $8535 in their pocket but they are also lowering their monthly payment by $276 a month

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Posted in Uncategorized, VA Loan, VA Refinance, VA Streamline Refinance | No Comments »

Top reasons to use a VA streamline refinance

Wednesday, October 27th, 2010

The VA Interest Rate Reduction Refinance Loan (IRRRL), or VA streamline refinance, is an excellent way for veterans and active duty service members to reduce their monthly mortgage payment by lowering their interest rate. And let’s face it, we could all use lower monthly payments these days!

The VA streamline loan is only available to those who already have a VA loan. There are a lot of advantages to streamlining your VA loan:

  • No appraisal required!
  • The VA does not require you to credit qualify.
  • No down payment, and all closing costs are rolled into the loan, so you bring nothing to closing!
  • Lowering your interest rate and monthly payment can save you money every month.
  • You don’t make a mortgage payment for two months after you close, saving you two month’s worth of mortgage payments!
  • You can choose to reduce the term of your loan (i.e. Go from a 30-year to a 25, 20, or 15-year loan) to save thousands on interest over the life of the loan.
  • You can refinance from an Adjustable Rate Mortgage (ARM) to a Fixed rate, avoiding costly interest rate hikes when the ARM rate adjusts.
  • You can refinance from a fixed rate to a VA 3/1 or 5/1 Hybrid ARM, lowering your interest rate and monthly payment considerably.
  • The streamline process is painless and relatively quick. You could be refinanced in just a few weeks and saving money!

Rates are at an historic low right now, so if you have a VA loan, chances are good that you will be able to benefit from lowering your interest rate with a streamline refinance.

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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!

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

    True NO Cost VA Streamline Loans are Easier Than Ever

    Thursday, July 22nd, 2010

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    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.

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    Posted in VA Loan, VA Refinance, VA Streamline Refinance, va interest rates | 2 Comments »

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