Tag Archives: Refinance In Idaho

Just finished up my busiest month since May of 2006!

Interest rates moved up around memorial day but my clients who listened to my advice to lock their loans got deals that probably wont come around again.

Right now, if someone was looking for a no cost VA refinance or an FHA streamlined refinance would pay about 1.25% higher than what was available before memorial day.

That doesn’t mean that rates are bad, in fact they are still great, just higher than they were a short time ago.

I keep track of my clients situations and needs and when I see a chance to improve it, I will contact them and let them know what is available. It was those past clients that listened to my advice and had me lock their rates that were successful in getting a no cost refinance in the low 3’s. The clients who didn’t want to lock all thought the rates would drop a little more and missed the opportunity when rates moved up 4 weeks in a row.

While I wish everyone had listened to my advice, most did and that made for a lot of work and long hours getting their loans set up, processed and closed. I did have to skip a few trips to the gym or lunch invites, but it was worth it to take care of my clients.

3 questions to ask yourself before you sign that 15 year mortgage

Some things to consider when choosing a 15 yr. mortgage:

Can I make my payments if my income were to drop in the future?

Am I putting money into an emergency fund or my retirement accounts?

Do I have any other, higher rate loans that need to be paid?

If the answer to any of the above is “yes”, you might want to reconsider.

Getting a lower interest rate will not help you if you cannot make the higher payment in the future.  A better choice might be to take a 30 yr. mortgage and pay on it as if it were a 15 yr. mortgage.  You simply calculate how much it would take to pay it off in 15 yrs. and send in the additional principle with your payment. If you don’t have a calculator, here’s one.

Be sure you indicate that the additional funds are to be applied to principle, otherwise your lender may not know what to do with it and instead put it in your escrow account.

If you want to discuss this with a lender who will look at your total situation, here I am.

 

 

Don’t fall for that “too good to be true” interest rate offer!

I have the advantage of being in the industry and can see a misleading offer a mile a way.

Recently, I was shown an offer for a VA refinance at 2.25% (3.94%Apr) and had to dig into it.  Sure enough this national, Internet only, lender was offering a 3 year adjustable rate VA Loan.  Furthermore, it had a 1% origination fee plus at least 1% in discount points.  On a $150,000 loan that would be over $3000 in additional costs borrower would have to pay just to save about $75 a month instead of taking a 30 yr fixed rate in the low 3’s.  In today environment, it just doesn’t pencil out when you run the savings vs the cost and the projections for long term interest rates.

Now to be fair, I do have adjustable rate mortgages available to my Idaho Mortgage seekers, I just don’t think they are the best choice for most borrowers.  If someone just has to have the lowest rate and will tolerate the risk of an adjustable rate mortgage, then I guess I would write the loan for them after much disclosure of how much they are going to pay if the loan adjusts to its maximum over the life of the loan.

Many times online only lender use these advertisements to simply make the phone ring and then switch the borrower to a normal fixed rate loan once they find out that too good to be true rate is for an adjustable rate mortgage.  This is a classic case of “bait and switch.”

 

 

 

How does a VA refinance work?

If you have a Veteran’s Administration Loan, you may qualify for one of the best loan programs in existence today, the VA Interest Rate Reduction Refinance Loan.  This loan is also sometime referred to as a “VA Streamline” or IRRRL  (pronounced Earl.)

The VA IRRRL allows a Veteran or in some cases, the widow of a Veteran to refinance their loan into a lower rate or from an adjustable rate to a fixed rate without getting a new appraisal or providing a lot of new documentation.  The Veteran’s Administration doesn’t care about the present value of your loan, instead they are more concerned that you have been making your payments on time.  Most people in my area, Boise, Idaho have experience a loss of value in the housing crisis that hit us in 2007.  I have been successful in helping my clients get lower rates and payments even though their current market value is probably less than when they originally took out their VA Loan.

One thing to note about the VA IRRRL, it doesn’t let you obtain any extra cash out of your loan nor does it allow you to payoff a 2nd mortgage or Home Equity Line of Credit (HELOC.)  A Veteran home owner could take their extra mortgage payment savings and apply that to any second mortgage and accelerate the payoff.

It also requires a process called a subordination of the second mortgage where the second mortgage lender agrees to allow the new first mortgage.  Many times there is a fee from the second mortgage holder to do the agreement and it takes a week or two to get it done.  It is something we do as part of our service.  I advise my clients when seeking to refinance their Idaho VA Mortgage if they have a second mortgage that needs subordinating.

Currently in my market, Boise Idaho, we are refinancing VA Mortgages into new, lower rate loans in the 3’s.  We also have a No Cost VA Loan where for a slight increase in the mortgage rate, we obtain a large mortgage credit for our clients to offset their closings costs.  those No Cost Va Loans in Idaho are also in the 3’s for 30 yr fixed rate loans.

It is common for many of my past clients to call me up and have me run their numbers and see if another No Cost VA IRRRL is available.  If someone saves even $50 per month and they are not increasing their loan balance, it is like getting a free $50 or more per month.

There is not enough space here to go into all the details of getting a VA refinance in the Boise, Idaho.  should you have any questions or want me to look at your situation, call me at 208-861-7579 or simply shoot me an email and I can get your custom mortgage quote for you.

 

Need to get your loan done quickly, I just closed one in 20 days. Start to funding!

This was a VA refinance, so it takes 4 days from signing to funding due to the right to recind period of 3 days. 

It helped that the client was prepared and got anything I needed right away.  The Title Company, Pioneer Title of Ada County, worked the signing into the clients work schedule.  It was the smoothest loan I have had in a while.

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