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USAA vs. NFCU: VA Loan, post-housing bubble Edition

exNavyOffRec

Well-Known Member
When you refinance things are usually a lot easier since you aren't buying a house all over again. With rates so low many banks have made it even easier since so many people are refinancing nowadays.

As for the full point, do the math and see for yourself. I refinanced for less than a point reduction and it was worth it to me, it will cost me almost exactly the same over the long term but lowered my monthly payment by more than 10%. So run the numbers a couple of times and see if it is worth it to you.

I refinanced to cut my rate and term so my payments are just a hair lower but I knocked 6 years off the loan.
 

Flash

SEVAL/ECMO
None
Super Moderator
Contributor
..That being said refinancing a VA loan is super simple. There is a special program that streamlines the entire process. It's called IRRRL, I think.

I didn't do use the IRRRL but refinancing my VA loan was very easy with little paperwork and in a short amount of time. I kept having to check myself to make sure I wasn't doing something wrong or missing something it was so painless compared to my initial mortgage.
 

Randy Daytona

Cold War Relic
pilot
Super Moderator
We are considering building our next home. Since neither USAA nor NFCU offers construction loans, any recommendations on banks to use? (USAA referred us to US Bank) Also any pitfalls or recommendations that people have seen going through this process would be appreciated.
 

zippy

Freedom!
pilot
Contributor
Customer service may be better going with a local bank where you're planning to build.

Ease of qualifying for home loans is directly proportional to how little thinking/ actual work underwriters have to do for the numbers to make sense to them. If you own multiple properties consider waiting out the time getting a pre-approval first, or at least plan on a long closing timeline for he banks to get their shit together.

Find a contractor/builder you'd like to use, and see who they're used to working with on the finance front (or they may have their own mortar department).
 

Gatordev

Well-Known Member
pilot
Site Admin
Contributor
We are considering building our next home. Since neither USAA nor NFCU offers construction loans, any recommendations on banks to use? (USAA referred us to US Bank) Also any pitfalls or recommendations that people have seen going through this process would be appreciated.

We're currently building a home now (well, more accurately, we're throwing money at contracts and eventually a house is supposed to appear in a few months). We went through the builders local lender who has competitive rates AND allowed us the ability for the builder to pay all closing costs. This was a development instead on an individual home, but still, it might be something to ask with a particular builder.
 

SynixMan

HKG Based Artificial Excrement Pilot
pilot
Contributor
Oh, God. I have gotten dozens of unsolicited letters about this program, I got put on some mailing list and now everyone and their mother has been mailing me about IRRRL.

Public records have your name and address! Welcome to home ownership!
 

Marty Medve

Marty Medve, Senior Broker, Trident Home Loans.
pilot
We are considering building our next home. Since neither USAA nor NFCU offers construction loans, any recommendations on banks to use? (USAA referred us to US Bank) Also any pitfalls or recommendations that people have seen going through this process would be appreciated.
There are companies that do VA construction Perm loans. I recommend these to potential clients. Rates aren't as good as our 3.25% purchase VA loan, but you can do 100% VA construction.
Universal or Centennial Bank do them in Pensacola.
 

Marty Medve

Marty Medve, Senior Broker, Trident Home Loans.
pilot
For the mortage noobs like myself, when you say "full-on refinance," is a refi essentially like going through the mortgage process again? I know there are usually closing costs associated with it like in the mortgage (unless it's one of those no closing cost ones, but I assume they just add those costs into the new balance). I also heard the gouge on refi is that it's usually not worth it unless you can lower it by a full point or more (obviously not the case with the loan modification you mentioned).
Any refinance can be done by keeping the payment the same. By lowering the rate at no cost, the savings in absolute. You have to do a no cost loan though to ensure savings are immediate.

No cost means all closing costs paid including the VA funding fee. Prepaids are not included. If you follow this, then you can't lose. Dropping one full point is meaningless. It's the term, rate and cost that might cost more if you stretch the loan out to 30 years again. That's not required as you can self amortize it in every case.
 

Marty Medve

Marty Medve, Senior Broker, Trident Home Loans.
pilot
If you shop around you can find lenders that will actually pay the closing costs (i.e. not add them to the balance)

As @Flash said, it's usually easier when you refinance. That being said, I refinanced from a non-VA to a VA loan and it was the most difficult mortgage event I have ever experienced.

That being said refinancing a VA loan is super simple. There is a special program that streamlines the entire process. It's called IRRRL, I think.
The VA IRRRL is a government program that offers .5 Funding fee plus costs to refinance. These can be done NO cost right now at 3.5%, up from 3.25% after the election. WE did about $140 million this year paying the closing costs as well as the funding fees for a true no cost refinance. This loan doesn't require income, an appraisal, a COE, nor does it need asset verification.
 

HH-60H

Manager
pilot
Contributor
There are companies that do VA construction Perm loans. I recommend these to potential clients. Rates aren't as good as our 3.25% purchase VA loan, but you can do 100% VA construction.
Universal or Centennial Bank do them in Pensacola.
Are you a mortgage broker?
 

Marty Medve

Marty Medve, Senior Broker, Trident Home Loans.
pilot
Are you a mortgage broker?
I own Trident Home loans in Pensacola with Fellow Navy Pilot Tim Moor. I am a licensed Loan originator, but run the company of 25 employees. Several others are Navy Pilots and wives of military as well as former enlisted.
 
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