Comments on: Today’s National VA Mortgage Rates For 02/12/2010 http://valoansdoneright.com/todays-national-va-mortgage-rates-for-02122010/ Sun, 01 Aug 2010 04:21:12 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: jburke http://valoansdoneright.com/todays-national-va-mortgage-rates-for-02122010/comment-page-1/#comment-26 jburke Thu, 22 Apr 2010 19:57:02 +0000 http://valoansdoneright.com/?p=280#comment-26 Hi David, Here is what is going on. The lender has offered you a 3/1 arm with a cost of at least 1% (discount paid to the lender to get the rate down to 3.75%) plus at least 1% origination ( $300,000 X 2% = $6,000). Bottom line is they are charging you too much and not looking out for your best interest. You will save $200 per month but if you divide the cost by the monthly savings it will take you 8.75 years to recoup and that would only happen if your rate did not adjust in that time frame. The escrow account will be refunded anytime you refinance and the 2 skipped payments, well you will always skip at least one payment and the other payment is rolled into the new loan as prepaid interest. You really need to have another banker/broker run this scenario for you. For example, you can get a 5/1 arm at 4% without paying the discount. Hi David,

Here is what is going on. The lender has offered you a 3/1 arm with a cost of at least 1% (discount paid to the lender to get the rate down to 3.75%) plus at least 1% origination ( $300,000 X 2% = $6,000). Bottom line is they are charging you too much and not looking out for your best interest. You will save $200 per month but if you divide the cost by the monthly savings it will take you 8.75 years to recoup and that would only happen if your rate did not adjust in that time frame.

The escrow account will be refunded anytime you refinance and the 2 skipped payments, well you will always skip at least one payment and the other payment is rolled into the new loan as prepaid interest.
You really need to have another banker/broker run this scenario for you. For example, you can get a 5/1 arm at 4% without paying the discount.

]]> By: David http://valoansdoneright.com/todays-national-va-mortgage-rates-for-02122010/comment-page-1/#comment-25 David Thu, 22 Apr 2010 19:54:43 +0000 http://valoansdoneright.com/?p=280#comment-25 I just purchased a house fixed at 5.5%, but have been offered a VA Hybrid refinance at 3.75% fixed for 40 months and then can only increase a max of 1% per year (if applicable) to go no higher than 8.75% (ever). Increase is based on T-bills index and has never risen 5 years in a row. The loan is also re-evaluated every year based on what is actually owed. So the lower it gets the lower the payments or if the rate increases it would stabilize and be no higher than my current payment even after 8-10 years. My current loan is for $301,000 and the new loan would be $321,000 after frees and such. Really struggling with this, but it would lower my payment $200 a month and would allow me to get my escrow and two months payments back (cash in my pocket). Normal ARMS are bad, but this seems to be good and is backed by the VA. Any insight or suggestions would be most appreciated. Thanks, David I just purchased a house fixed at 5.5%, but have been offered a VA Hybrid refinance at 3.75% fixed for 40 months and then can only increase a max of 1% per year (if applicable) to go no higher than 8.75% (ever). Increase is based on T-bills index and has never risen 5 years in a row. The loan is also re-evaluated every year based on what is actually owed. So the lower it gets the lower the payments or if the rate increases it would stabilize and be no higher than my current payment even after 8-10 years. My current loan is for $301,000 and the new loan would be $321,000 after frees and such. Really struggling with this, but it would lower my payment $200 a month and would allow me to get my escrow and two months payments back (cash in my pocket). Normal ARMS are bad, but this seems to be good and is backed by the VA. Any insight or suggestions would be most appreciated.

Thanks,

David

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