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Old 09-16-2008, 12:41 PM
 
68 posts, read 224,724 times
Reputation: 41

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I would like to get a va irrl loan. I've been through the process twice with loan companies, but at the close of the deal they want to charge 10,000 dollars to refinance the loan. Of course, they don't let you know this up front. They will roll that into your new loan. But I think that is too much for refinancing. Does anyone know of an honest place that does va interest rate reduction loans?
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Old 09-16-2008, 12:56 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,093,116 times
Reputation: 1007
what is your loan amount?
what state are you in?

are you saying they're charging 10k PLUS escrows?
Escrows are NOT lender fees.

Also, they should let you know this upfront.
It should be in the Good Faith Estimate.
Funding Fee is also a VA charge not a lender charge.

last thing....VA is VERY STRICT on fees they're allowed to charge.
They dont allow junk fees to be charged .......
(It's one of the best loans out there that protects its borrower)



Quote:
Originally Posted by needrain View Post
I would like to get a va irrl loan. I've been through the process twice with loan companies, but at the close of the deal they want to charge 10,000 dollars to refinance the loan. Of course, they don't let you know this up front. They will roll that into your new loan. But I think that is too much for refinancing. Does anyone know of an honest place that does va interest rate reduction loans?
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Old 09-16-2008, 01:32 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,435 times
Reputation: 249
your refinancing a VA?
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Old 09-16-2008, 04:51 PM
 
68 posts, read 224,724 times
Reputation: 41
Yes, I have a va loan fixed 6.3% 30 years, for 291000 and payed down to 284000 and it is in the state of Nevada. It was 10,000 dollars all together for the fees they would roll into the next loan. Yes, I would like to refinance and the irrl loan is the only one that will let you do that without needing to have equity in the house. We have very good credit and never missed any payments. We want to refinance to lower the payments because we need to move next May and we will rent our house out.
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Old 09-16-2008, 05:27 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,093,116 times
Reputation: 1007
Do you realize that the funding fee is 1240.
You're probably going to pay 1% origination fee 2840. That's 4k, and that's not including other lender fees, escrows, etc.

If you're planning to move within 1 year, then it's not worth refinancing at all. What if the closing costs is 5k? You will recoup the costs within 3-4 years.

Your rate will probably not be lower than 5.5%

Quote:
Originally Posted by needrain View Post
Yes, I have a va loan fixed 6.3% 30 years, for 291000 and payed down to 284000 and it is in the state of Nevada. It was 10,000 dollars all together for the fees they would roll into the next loan. Yes, I would like to refinance and the irrl loan is the only one that will let you do that without needing to have equity in the house. We have very good credit and never missed any payments. We want to refinance to lower the payments because we need to move next May and we will rent our house out.
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Old 09-16-2008, 08:31 PM
 
28 posts, read 82,408 times
Reputation: 20
You have to pay extra points to get to 5.5% plus the VA funding fee. Example Navy Federal Credit Union:
All VA loans are subject to a funding fee of up to 3.30% of the loan amount.
Interest Rates 5.500%
Discount 1.125
APR 5.886%

30 YearsInterest rate:6.300%Loan amount:$ 291,000.00 $ 1,801.21 a month

30 YearsInterest rate:5.500%Loan amount:$ 284,000.00+10000.00=294000.00 1,669.30 a month

131.91 difference in mortgage payment.....

You have a good interest rate at 6.3%. The refinance would put you more under than the house is worth due to the assumption that you are trying to avoid an appraisel or conventional loan. Also you gave the bank 10000.00 to bring your mortgage to 284,000 and the bank counter with 10000.00 in fees..

Last edited by tool123; 09-16-2008 at 08:45 PM..
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Old 09-16-2008, 08:36 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,093,116 times
Reputation: 1007
it's a VA IRRRL loan

Quote:
Originally Posted by tool123 View Post
You have to pay extra points to get to 5.5% plus the VA funding fee. Example Navy Federal Credit Union:
All VA loans are subject to a funding fee of up to 3.30% of the loan amount.
Interest Rates as
low as Discount
Points APR as
low as
5.500%1.1255.886%
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Old 09-16-2008, 08:53 PM
 
28 posts, read 82,408 times
Reputation: 20
The funding fee for an IRRL remains at 0.5 percent
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Old 09-16-2008, 08:57 PM
 
28 posts, read 82,408 times
Reputation: 20
Closing costs and pre-paid expenses can vary widely with 3% - 5% as the range for most places. He is paying about 3.5% on the loan.
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Old 09-16-2008, 09:34 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,435 times
Reputation: 249
what is your break even point?
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