any advantage to using VA loan to refinance to lower interest rate?

me ^ | 8-22-11 | Wobbly Bob

[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?

[hope]

I believe Its 100% LTV. Veterans pay 1% funding fee. All other CC paid by the seller if he agrees to the terms.

[Abigail Adams]

If you’ve been paying on the 30-year loan for 7 years now, it’s like you have 23 years left on it. Might as well go with a 15-year loan, as you will save tons on interest, and it’s not far off from the 23-year mark you’re currently at. You don’t really want to pay the loan for 37 years total, do you?

[HereInTheHeartland]

Is your loan to value over 80%, then maybe VA might be a good option to handle the PMI.
VA has a hefty funding fee to pay. You can add it to the loan amount or pay separately.
If you receive any disability payment from VA however; that funding fee is waived. Even a $200/month for hearing loss will get it waived.

If under 80% LTV; then VA probably is not the way to go.

I would not recommend Quicken. Find someone with one of the major lenders who will hold your loan and won't sell the servicing rights.

You have some options on the closing costs. I do this for a living. Depending on your loan size; the lender can give a higher rate than normal and offer you a lender credit to cover some or all of the closing costs.
The amount of lender credit and rate bump to do that all depends on the loan amount.

[HereInTheHeartland]

“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.”

In my opinion; you would want to see a payback much sooner than that.

[WOBBLY BOB]

Find someone with one of the major lenders who will hold your loan and won't sell the servicing rights.

sounds like I should maybe just stay where I'm at -US Bank has kept the loan in-house since the beginning.(and refused TARP , IIRC,too.)

[steveo]

From mrs. steveo who has 30-years in the mortgage industry.

"First of all, DON'T use an internet lender. Seriously? Loans are complicated after the government has tied the hands of all involved in mortgage lending. You need a responsive lender, and internet does not equal customer service or responsiveness.

Although VA has their allowed parameters, Investors require different rules and vary from investor to investor. Some will allow only 90% LTV, some will go to the VA allowed 100% LTV. VA charges a "funding Fee" which is a one time charge for using the VA program. This will be 2.15% of the loan amount, and can be financed into the loan. Currently VA rates are around the 4% mark with the borrower paying the closing costs, 4.25% with some fees covered by the lender. Keep in mind the VA is very nit picky about properties, and you will need to have at a minimum a clear pest report. If you want more info, let me know"

[HereInTheHeartland]

US Bank does a good job.
I work for a competitor; but they seem like a solid company. If you have a location close, call up and talk to one of the mortgage loan officers.
They may have a streamline process with lower fees since your loan is with them.
We do; and that sometimes can help even if the home value has softened.

[aMorePerfectUnion]

Pentagon Federal Credit Union has a 30 year at 4.125%

https://www.penfed.org/productsandrates/mortgages/mortgagerateslisting.asp

good luck,
ampu

[aMorePerfectUnion]

BTW, PennFed CU has a VA at 3.875%

[RinaseaofDs]

Been a long time since I did mine. Bought my first house with mine. Here were the benes:

1. No money down.
2. Excellent interest rate
3. Realtors loved them, since there was never a question about qualification as long as you were employed.
4. At the time, those mortgages were easy to sell too. They were seen as high quality small to medium sized mortgages.

Don’t know how they’ve changed that benefit, but for us it meant being able to own a home.

[CodeToad]

“and you will need to have at a minimum a clear pest report.”

Not really. The VA doesn’t have such a requirement. A bank can add requirements, but the VA has nothing like that.

[WOBBLY BOB]

I might do that.there’s one pretty near and we did a lot of improvements a few years back.

[willyd]

You should be able to get between 3-4% on a VA loan straight refi if you are patient. Also, fill out all the paperwork yourself...get a complete loan package and then go find some mortgage broker to file all the paperwork for $750.

Tell him your deal ahead of time...You will handle all the paperwork...make sure he has as little work as possible...in return you need a par rate and you will pay him $750 for filling out a couple of forms.

If they tell you it can’t be done...they are lying to you.

[steveo]

From the VA handbook- it can vary by state, as some states aren't considered areas of likely termite infestation:

3.Unless otherwise noted, wood-destroying insect information is required per Section 13.06 of the Lender's Handbook. Regardless of the location of the property, an inspection is always required if the appraisal report indicates evidence of wood-destroying insect damage or an active insect infestation.

Further:
Construction and Valuation Frequently Asked Questions Termites
1. On an existing property, is a termite report required?
Termite inspections are required on existing properties if they are located in an area where the probability of termite infestation is "very heavy" or "moderate to heavy" according to the Termite Infestation Probability Map published in the International Residential Code.

2. Is a termite inspection always required when a veteran is purchasing a property using VA financing?
VA only requires pest inspections when there is evidence of a condition conducive to pest infestation and for properties that are located in an area where the probability of termite infestation is "very heavy" or "moderate to heavy" according to the Termite Probability Map published in the International Residential Code.

If there is a question about the location of an infestation probability boundary line in relation to the subject property, contact the Construction and Valuation Section at the VA Regional Loan Center of jurisdiction to determine if this requirement is applicable.

source: http://www.benefits.va.gov/homeloans/cavfaq_termites.asp

[WOBBLY BOB]

thanks for that info.

[tongue-tied]

Actually, the VA does have such a requirement, and also septic tank must be pumped (if you have one), plus other requirements. (Well water must pass tests for approval from VA.)

I bought a new home with VA a loan, and the realtor had to treat foundation for termites, pump a septic tank that wasn’t even used yet, and water had to pass tests before VA would approve.

[CodeToad]

It seems these items are regional and not national. Each region can stipulate items. In my region, there were no requirements. None. Zip. nada.

[tongue-tied]

Wow. Good to know if I ever move out of NV. Someone upthread posted a termite infestation map, and see that northern climes should be exempt. May have to move there some day.

[CodeToad]

Denver is an awesome location as far as bugs...we have very, very few. Denver downtown has some but it is nearly unheard of to have termites outside of Denver’s older areas.

[WOBBLY BOB]

learned the hard way to avoid Quicken Loans. As soon as they get your deposit ,if you change your mind and go with another lender (even before signing any docs) , you’ll never hear from them again and good luck getting any of the deposit back.