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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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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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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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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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Top 5 Reasons to Use a VA Streamline

Monday, October 18th, 2010

Using a VA streamline loan is a smart idea for anyone with the opportunity to do so. There are a number of benefits to the veteran, which will be presented in the following paragraphs. VA loans tend to have more flexibility and to be more attainable, due to the fact that more lenders offer them. It is often easier for the veteran to qualify, making it a convenient choice compared to other types of loans. Here are just five of the main reasons to choose a VA streamline loan!

  1. The qualification process for that of a VA loan is much easier than for one of a conventional loan. A VA loan is a specific type of loan available to  US Armed Service veterans, who have served at least 90 days during wartime or 181 days during peace time and were not “dishonorably discharged”. They may be a retired veteran or the spouse of a veteran who died in the war or due to service related wounds and have no re-married. There are many ways to qualify for a VA loan.
  2. Credit standards are much less strict. Typically this is where many borrowers have trouble with their loans. The VA looks for a clear 12 month credit history. Also, credit scores do not affect the rate of the loan.
  3. There is no down payment required. This payment could be used for many other things, such as savings, paying off other debts, possibly a payment on the home later, or maybe a family trip! If the borrower chooses, they can make a down payment, but just keep in mind that it is not a requirement!
  4. The amount that the VA allows the veteran to qualify for is generally quite a bit larger than that of a conventional loan, while also having lower interest rates. (Rates follow the market, but can become even lower if the veteran does opt to make the optional down payment.) A veteran can get a home for $0 money down and up to $1 million! Most states in the United States have a loan limit of $417,000, as chosen by lenders; however, in some states the max goes up to $625,500. Specific lenders in any state will allow higher loan amounts to fund, up to a maximum of $1,000,000.
  5. The government limits the amount that can be charged in closing costs, origination fees, and appraisal fees. There are also no mortgage premiums required. Lenders are prohibited from requiring one. This is because of the guarantee put on the loan.

Veterans should take advantage of the VA loan if they can qualify for this option. Another perk to the veteran is if they have any kind of service disability. They can look into getting their funding fees waived as well. There are so many benefits to the VA streamline that it would be hard to not look into it. It is definitely one to take into consideration when buying a home.

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VA loans with Wells Fargo should be streamlined with Flagship Financial

Wednesday, September 1st, 2010

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

Wells Fargo VA Streamline Banner

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

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

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

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

My manager has been with Wells for 15 years and he says there is no way we can be 3 points away from wholesale, but you know what your doing and if you can get it I would jump on it too..

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

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

Wells Fargo VA Streamline Banner

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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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