Something that most military homeowners 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 Bank of American 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 you get a better grasp on this.
Why can Costco sell you 20 lbs of filet mignon cheaper than if you were to go directly to let’s say your local butcher and buy it directly from them? The answer is simple. Costco has negotiated huge discounts due to the volume of meat they buy, due to the fact that they (Costco) spend money marketing and selling the meat and now this is money that your local butcher will not have to pay to move their product.
VA mortgage loans are very similar. Bank of America, 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 Bank of America bank on the corner or in the shopping plaza. If you were to call Bank of America directly as a consumer you will work with their retail division and get great service and decent rates. However, if you call Low VA Rates, a division of Low VA Rates or any other broker that has access to 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 Bank of America 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 B of A 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 Bank of America when it was Countrywide for 15 years and he says there is no way we can be 3 points away from wholesale, but you know what you’re doing and if you can get it I would jump on it too..
So for those of you with VA loans at Bank of America what does this mean to you? I am not trying to suggest that Bank of America 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 Bank of America can do for you and then contacting Low VA Rates 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. Low VA Rates is dedicated to assisting you with any VA home loan questions you may have.