Posted on 08/22/2011 11:09:40 AM PDT by WOBBLY BOB
(I'm considering using my VA loan for the 1st time.)
Currently at 5-1/4 (for 30) and would like to try for lower. How much lower a rate makes it worth the paperwork ,”fees” , hassle and hoop-jumping?
Anyone here ever used Quicken Loans to refinance online?
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Dave Ramsey has talked about this. I believe he stated that the average American moves every 7 years...and to use that as a guide for determining whether or not you will ‘break even’ by the time you move.
btt to monitor. I don’t know the answers but am interested.
Only if VA loans still assumable.
I don’t believe they are assumable. Even so you wouldn’t want someone to. If you sold your VA financed home you would want the loan payed off on case you wanted another VA loan.
Only if you would need Mortgage Insurance Otherwise
I have one, but I plan on turning it into a standard once I reach 30%.
Generally, Ramsey will say pay cash. Now I wish I had listened, if I had, wouldn’t even give a rip what is going on with the housing market.
It used to be that you could finance up to over 100% (105%...? to include Closing Costs?) of the appraised value for a VA loan. Not sure if this is still the case.
With rates at historic lows....suggest you look at 15 year mortgage instead of a 30 year, and if they offer 24 or 26 payments, instead of monthly....do one of those..you may find yourself with the same monthly ouflow, but a much fater pay-down..
With rates at historic lows....suggest you look at 15 year mortgage instead of a 30 year, and if they offer 24 or 26 payments, instead of monthly....do one of those..you may find yourself with the same monthly ouflow, but a much faster pay-down..
depends on how many years you got left on your current loan, and the amount of cash you are putting toward your principal vs. interest. If you are at least 15 years into a 30 year, then you are paying more to your principal than your interest. If you refinance, you will begin paying more interest than principal right off the bat. This is the dirty little secret nobody will tell you...hell, I could get a better interest rate, but right now 3/4 of my payment is going to principal. If I refinance, 3/4 of my payment will go to interest. Check this out first...
With rates at historic lows....suggest you look at 15 year mortgage instead of a 30 year, and if they offer 24 or 26 payments, instead of monthly....do one of those..you may find yourself with the same monthly ouflow, but a much faster pay-down..
I didn’t need PMI when I bought it since I put around 20% down.
that was 7 years ago- now I’m “underwater” like most people.(not by a huge amount) and not that it matters as much since I plan on staying long term.
2% used to be a benchmark long ago. The 2% less interest would cover the closing costs over 3 or more years. So the real question is the closing costs and how long you plan to stay in that house.
Good luck getting the approval. Maybe with the VA it may be easier, but the mortgage companies have become extremely tight with refinances. The rules have become extremely stringent and each company wants it's own assessment.
If you really want to do it, get a good company that has a good record on doing these things.
BTW, Dave Ramsey mentions Churchill mortgage on his show and website.
I’d rather have a 30 year at lower rate to provide a cushion given rising inflation and crap job market.
I already have been paying a little extra on my own toward principle via biweekly payments (instead of monthly) for years.
5.25 fixed 30 began 7 years ago.
We refinanced through quicken loans many years ago. It was easy and fast. It was all done via fax and email. Eventually a travelling notary showed up for us to sign docs. They will sell your loan as soon as it is done though.
Then it is likely worth it, no PMI for VA Loans ... you do have to pay a funding fee but it is baked into your loan as a one time charge.
For you it will be worth it. It is possible that you will find that your interest rate may be a little higher than a neighbor that wasn’t in the same financial position, but that is because the VA demands certain terms / protections for the VA and you that drive up the cost of the loan a little.
I looked at it at the time, the VA did a good job making these demands of the creditors.
An interest rate of 4.25% is possible, but you will pay a 3% VA funding fee at a minimum plus other closing costs. So, if you are saving 1% on the rate but paying 3%, minimum, to get it, you will need to stay in that house for at least 5 years, and most likely 7 years due to those other closing costs, to get any payback on savings.
Most closing costs are around 3% right now, so even if you skip the VA and used a conventional loan, you’ll still need to stay in the house about 5 years for it to pay off.
My suggestion would be to pay early, such as pay a mortgage payment every 3 weeks instead of 4 and watch the effective interest rate drop below 3.5%.
I am a loan officer at a large national lending bank.
I would suggest refinancing by way of a Conventional loan if you will be borrowing less than 80% of your home value. That way, you avoid VA funding fees. If you want to do a VA loan, you would need to stay in the property for a long time and have no plans to move in order to make the cost of refinancing worthwhile.
Current 30 Year fixed rates are as low as 4%, and I quoted 3.25% on a 15 year loan just this past friday.
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