VA Streamline Refinance w/ Loan Amt over $417K (loan officer, interest rate, fee)

[DanPz]

Hi all, quick question. Need to know a good strategy to shop around refinance rates (and closing costs) for an existing VA mortgage that is well over $417K.

I live in the DC area, where the VA limit is 625K (not the standard 417K). Earlier in '08, I used a VA mortgage to fully finance purchase of a home for 460K. At the time, the one bank I could find that was on the cutting edge with the new rules raising the conforming limits in high-cost areas - in a VA loan scenario - was Flagstar Bank (USAA and some others required 25% of the difference in cash). I have a fixed-rate 30 yr with Flagstar, and have been very pleased with their services.

With the recent interest rate plunge, my lender contacted me about a VA IRRRL (Streamline) refinance. They'll roll the closing costs into the mortgage so won't cost me a dime out-of-pocket, and monthly payment will go down by at least 200-300. (no funding fee since I have service-connected disability). VA recommends getting several quotes, so I'd like to do that -- but still not sure where to find other lenders who will refi @ 100% over 417K in a qualifying area. Just trying to do my due diligence here -- otherwise I'll still be OK with Flagstar. Can anyone knowledgeable in this field pass along names of other lenders who might be in this particular business? Thanks!

[onevthoki]

We are also refinancing and locked in on Wednesday. Closed in January '08, and like you, pay no funding fee because of disability rating. Used our same broker and he streamlined with the same lender. Now, the kicker is our loan was under the $417K limit, so not sure how that will come in to play for you, but the lender told me the only requirement was that we had not been late on the loan. There is no appraisal and basically the only costs to us are for the title policy and the title company. We should recoup our costs in 7-8 months. Anyway, if you would like to DM me I would be happy to pass along the name of the broker - he is retired reserve and located in Fredericksburg.

[SmartMoney]

Not all lenders have been doing what we refer to as VA Jumbo loans. In fact, quite a few lenders are not doing them at all. Someone also mentioned recently that VA is also doing 100% cash out, and again, only a few lenders are participating.

The trick here is rates change daily (also hourly), so your shopping must be up to date. For example, I could be quoting a rate at cost or very close to cost (an individual loan officer may personally discount for different reasons) and your Flagstar quote will still be below it because it's 2 - 4 days old.

Flagstar is well known as a wholesale buyer of loans from other brokers and correspondent lenders, but I don't know much about them lending direct. Who did your loan start with? Flagstar is not an originating lender in our area.

[DanPz]

Thanks for the reply. Yeah, I realize many lenders aren't going there, so that may be good reason to refinance with the current lender.

I would plan to float the rate and lock on a good day. So I guess the real comparison would be on closing costs (incl. any points), and on a comparison of the estimated interest rates at a given time.

Flagstar was the original lender. Lendingtree made the connection earlier this year, and at the time they appeared to be the only VA jumbo lender that did not require money down.