Posted: 2/24/2020 4:26:26 PM EDT
| I’m sure it’s probably bait and switch? I keep seeing this number pop up, might be time to refi? |
|
Quoted:
I do not know where you are located, but you may need to be checking jumbo rates. At 500k financed you are out of "traditional" conforming mortgage range in many places. The jumbo rates will be a little higher too. |
|
Quoted:
The VA funding fee is a killer. It's PMI that's embedded in the mortgage so you pay on it for the life of the loan instead of, like PMI, which is dropped once you reach 80% LTV. https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/ |
|
I'm waiting on the loan officer to call me back. Looks like I can refi to 2.99 on 30 year fixed; currently 2.5 years into a 3.5% 30 year fixed. Using the IRRRL program with a waiver for funding fee I should have no costs and the lender will give me $900. I was concerned about resetting the amortization schedule, but if I can lock this in I'll pay less interest on day #1 then I am right now. I can't see a reason not to do it. As long as I pay it off by 2047 I save over $50,000 in interest. I can pay the same I am right now while paying 110% of the payment each month (extra 10% to principle). |
|
Quoted:
It's also waived for service connected disability. https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/ Doesn't say what level of disability. e.g., I am at minimum 10%. For those without service connected disability it's a financial killer. You're paying 2.15% to 3.3% on top of the mortgage to finance the down payment. 20% of a $300K house is $60,000 You're paying ~$6000 at whatever interest rate of the mortgage to borrow $60,000. That's a 10% fee plus interest. I used my VA loan for my first house because I didn't have the down payment. But back then the funding fee was 1% and I bought a $73,000 house. Paid $730 to finance $14,600, 5% fee. |
|
Quoted: OK Doesn't say what level of disability. e.g., I am at minimum 10%. For those without service connected disability it's a financial killer. You're paying 2.15% to 3.3% on top of the mortgage to finance the down payment. 20% of a $300K house is $60,000 You're paying ~$6000 at whatever interest rate of the mortgage to borrow $60,000. That's a 10% fee plus interest. I used my VA loan for my first house because I didn't have the down payment. But back then the funding fee was 1% and I bought a $73,000 house. Paid $730 to finance $14,600, 5% fee. Glad I saw this thread, I am at 3.25% right now, but if I can go down to 3 with no fees, it is worth it. |
|
Quoted:
Navy Fed is showing 3.0% with .5 discount points for a VA. You can probably do better though. I’ve been getting offers in the mail for just under 3.0%, but that’s my current rate so I don’t think it’s worth it to refinance. |
|
Quoted:
Lol, me too! I was over 8% on my first VA loan and was so happy at that time. Conventional were slightly lower, but I couldn't afford my house that way, had to go VA or put a lot more money down. Quoted:
Quoted:
I was so happy we got 8.5% or 8.75% on my first house.  |
|
Quoted:
I do not know where you are located, but you may need to be checking jumbo rates. At 500k financed you are out of "traditional" conforming mortgage range in many places. The jumbo rates will be a little higher too. |
|
I have closed multiple VA loans at 3% lately. Depending on the credit profile the upper 2's is possible with the recent dip. 20+ years as a lender. If you need a VA loan check with a local broker. I am happy to refer you to someone in your state that I trust to take care of you. (I am only licensed in Tx now) The big banks are screwing Vets bad on VA loans. Pretty big controversy in the industry right now. |
|
Quoted:
You should not have to pay the fee with 10%. I am at that, and have never paid the fee. Glad I saw this thread, I am at 3.25% right now, but if I can go down to 3 with no fees, it is worth it. |
|
Quoted:
Can the fee be waived if you don’t have a disability rating yet because you’re still on AD? Quoted:
Quoted:
You should not have to pay the fee with 10%. I am at that, and have never paid the fee. Glad I saw this thread, I am at 3.25% right now, but if I can go down to 3 with no fees, it is worth it. |
|
I’m a mortgage broker. I’ve closed three VA streamline refis in the last week. They were around 2.9%. To do an IRRL (interest rate reduction loan], you need to reduce your rate by a minimum of .5%, and you have to recoup the costs within 36 months. You have to be at least 210 days into your current loan and made six on time payments. The funding fee on an IRRL is .5%. They’re quick, simple, cheap, and easy loans to do. All three of the loans I closed recently were closed in one week from the application date.
If anyone in Missouri is looking to do one, hit me up 
In my opinion, 2.5% isn’t going to happen. Not without paying some fees. VA will allow up to two discount points to be charged. If you go that route, you’re not going to be able to hit your 36 month recoupment test. |
|
Quoted:
Who are you guys using as lenders? Looking at a refi Been doing some shopping around, but some lenders are saying my balance is too low, so go conventional, and of course $4000 closing costs.... |
|
Quoted:
How much was the refinance charge? Quoted:
Quoted:
I just refinanced my VA loan from 3.75 to 3.00 |