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Everything you need to know about VA mortgages and IRRRL

August 9th, 2019 by

First, let’s look at rate and term refinancing vs. cash-out refinancing.
Rate and term refinance: The goal here is to lower the interest rate and monthly mortgage payments. For VA mortgages, this is known as the Interest rate reduction refinance loan (IRRRL). Although you are not allowed to tap into your equity, you can still get money from the escrow account balance you’ll receive, and by skipping one or two mortgage payments depending on when your loan closes.

Skipping mortgage payments

If your loan funds (closes) on July 10th, you can either make the July payment or have it added to your loan balance. Since, mortgage companies bill in 30 increments, your August payment will be automatically built into the loan; and your next payment will be due in September. Which means, you skipped the July and August payments. Request a VA home loan quote

Getting your Escrow balance back

Every VA mortgage statement has a portion of your payment going towards your taxes and insurance, and the rest towards the interest and principal. The money for your taxes and insurance sits in an escrow account till your taxes and insurance premiums are due. At which point the lender will make the payment on your behalf.
With a new loan, the lender will have to set up a new escrow account and the existing (soon to be old) lender will mail you a check within 30 days.

Cash-out refinance

A cash-out refinance is for homeowners interested in taking cash out of the equity. The money is usually used to pay off high-interest debt and home-improvements. The VA cash-out refinance has guideline restrictions that are specific to VA loans and differ from regular conventional cash-out refinances. Request a cash-out home loan

How does a VA Mortgage work?

Department of Veterans Affairs (VA) assists Service members, Veterans, and eligible surviving spouses become homeowners. The loans are offered at competitive rates, without mortgage insurance for having less than 20% equity, and it often doesn’t require a down-payment.
VA mortgages are provided by private institutions, banks, and mortgage companies. A portion of the loan is guaranteed by the VA which allows the lender to offer a more favorable term on VA loans vs. traditional refinances. Request the best VA loans online
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VA Mortgage Benefits

1. VA mortgagees can borrow up to 100% of the purchase price as long as the purchase price doesn’t exceed the appraised value.
2. When requesting an IRRRL, the VA doesn’t require an appraisal.
3. A higher interest rate is OK when refinancing to a fixed rate from an adjustable rate mortgage.
4. The VA limits the fees a lender can charge. Total fees charged by the lender must be equal to or less than the total savings over 36-monts.
5. Guaranteed VA home loans will allow a higher DTI (debt to income ratio= debt/income) than conventional loans.

VA Mortgage Eligibility

To be approved for a VA mortgage, the veteran must have satisfactory credit, a valid certificate of eligibility (COE), and sufficient income. The property must be owner-occupied unless it’s a multi-unit structure. With multi-unit properties, the veteran must occupy one of the units as a primary residence. Get a quick quote on a low interest VA mortgage

VA Mortgage Costs

All veterans, excluding veterans collecting more than 10% disability, are required to pay a funding fee. The funding fee is determined based on property, type of loan, military category, down-payment if any. You can see the full breakdown of the VA fees here.
You are exempt from VA fees if:
• The veteran is receiving VA compensation for a service-related disability.
• If the veteran would be entitled to receive compensation for a service-related disability if they did not receive retirement or active duty pay.
• Surviving spouse of a Veteran who died from a service-related disability or in service.

It’s always a good idea to check with multiple sources when requesting a VA home loan. Be sure to choose a lender that is VA approved, reputable, and transparent with procedures and fees. We thank you for your service and look forward to meeting your needs. Get a VA Loan

Does Your Upcoming Home Purchase Require a Jumbo Loan?

Does Your Upcoming Home Purchase Require a Jumbo Loan?

June 1st, 2019 by

Purchasing a higher priced home may require a jumbo loan depending on where in the country the house is located. Typically, a conforming loan is limited to $484,350, except in certain areas where the average housing cost is higher.

If the home you are looking to purchase is outside of Fannie Mae and Freddie Mac’s guidelines, you will need what is called a jumbo mortgage. Jumbo home loans come have specific requirements and lending guidelines. A 30 year fixed jumbo mortgage will require a strong credit profile as well as a lower loan-to-value Ratio.

REQUIRED CREDIT FOR JUMBO HOME LOANS

A 30 year fixed jumbo mortgage is usually only available to consumers with a strong credit score around 680 or higher. A larger minimum down payment will also be required. These requirements are fairly standard between lenders, which makes it difficult for potential borrowers with a less than stellar credit history to obtain a 30 year fixed jumbo mortgage.

HOME VALUATION AND LOAN-TO-VALUE

As with any mortgage, a home appraisal will be required. The maximum loan amount available will be around 70% and sometimes as high as 80% of the appraised value. If you are looking to finance an expensive home, take the time to ensure that you will qualify for a jumbo mortgage before beginning the application process. Let’s Get Started

EXCEPTIONS TO THE RULE

In some areas where property values are much higher than the national averages, it is possible to obtain a conforming mortgage up to $726,525. The process required to obtain a non-conforming loan makes it worthwhile to check the conforming loan limits in your area before starting the process. Interest rates for jumbo or non-conforming loans can be as much as 20 to 25 basis points higher than conforming mortgages.

If you require a non-conforming jumbo mortgage, be prepared to have a higher down payment when purchasing a home. And don’t be shocked if you are offered a higher interest rate than what you hear on the radio. I prefer websites that don’t advertise generic rates.

If you are interested in a 30-year jumbo mortgage, visit GetMoney.com and get connected to a lender that offers excellent rates.

Money Online

Tricky Situations Where Getting a Loan Online Makes Sense

December 24th, 2018 by

Online lenders allow you to borrow money quickly and easily by simply completing a request on your phone or computer without leaving the comfort of your house or office. Theoretically, you can take out an online loan for any reason, but you’ll only want to utilize a loan if you’re sure it’ll aid your situation and not worsen it. Online loans can often carry a lower interest rate than credit cards, which can help you consolidate credit card debt or make large purchases. Finding the best online personal loan site requires you to do your homework and know what you need. Here are a few situations that you could benefit from taking out a personal loan online.

Getting Out of Debt

Online loans are perhaps most often used to help people consolidate their existing debt into one account to make the payments more manageable or even improve credit ratings. Interest rates on online loans are sometimes lower than credit card interest rates, so consolidating your high-interest debt can help lower your monthly payments every month. Find the best online loan website or online lender in order to ensure you work with an experienced lender who can help obtain a loan that makes sense for you.

Covering Costly Expenses

Whether you’ve got a wedding on the horizon or want to upgrade your home theater system, you never want to spend money you don’t have. A personal loan can get you the money you need ahead of time with a manageable payment structure so that you’re able to cover large purchases and pay them off over time.

Funding Financial Emergencies

Medical emergencies are often unexpected, which can make the ensuing medical bills just one more thing you have to worry about. An online medical loan can provide you with the money you need promptly, enabling you to focus your attention on the emergency at hand. Being able to pay off your loan over an extended period allows you to take care of financial emergencies with a peace of mind.

If you need a personal loan fast, check out our personal loans page.