VA Loans

[Jon - Trident Home Loans]

3 hours ago, JQuintana said:

+1 for Jon and Trident.  Closed a few days ago on a new VA loan at 2.875% (locked right at the beginning of everything going haywire) and he was consistently responsive to any questions I had and always kept my SA up with how the process was moving along.

 

2 hours ago, kona4breakfast said:

Another kudos for Jon and crew. 2.75% cash out refi closed at the beginning of the month. Wife and I have plenty of cash on hand, but this way I effectively keep my payments the same and pay for the projects in 27 years with equity today.

Thanks to both of you guys!  Enjoy the savings/extra cash.  Enjoyed working with you both and feel free to reach out if you need anything in the future. 

I definitely hear a lot of different perspectives on investing, down payments, cash outs, rentals, etc.  Seems like everyone has different risk levels and long term goals.  Some guys want to be debt free and some guys want to be highly leverage so they can generate more income from it.  It's odd offering mortgage/investment advice when asked because everyone has a different perceptive on what "right" looks like.  I just try to understand what strategy that person is operating on and then offer solutions to get them to their goal.  The harder ones are the guys with no strategy.  Those convos turn into a pro/cons of every option under the moon.  It's all good though.  I learn a lot from you guys and enjoy the different perspectives.  

Jon

Edited April 24, 2020 by Jon - Trident Home Loans

[kona4breakfast]

5 hours ago, FDNYOldGuy said:

The S&P 500 Index originally began in 1926 as the "Composite Index" comprised of only 90 stocks.1 According to historical records, the average annual return since its inception in 1926 through 2018 is approximately 10%-11%.[cite] The average annual return since adopting 500 stocks into the index in 1957 through 2018 is roughly 8%.

The average of +100% and -50% is 25%, but that's not what happens to 100 dollars invested. You'd think you'd be at ~$156 but you're back at $100. I'm old enough to have lost a large chunk of my principal within a year or two of starting to invest in the market which soured me on the whole index investing thing, but I'm young enough to stomach volatility in other assets. I've made it all back and have enough unrealized gains to pay cash for my house but I'm gonna keep dancing with the one that brung me because a world in which the market continues to rise in the face of millions on unemployed Americans is a world in which my investments do a lot better than 8%, all the while the bank that owns my house is stuck with 2.75%.

 

[DFRESH]

@Jon - Trident Home Loans- How are things looking (rate-wise) from your seat these days?

[di1630]

A lot more stabile now.  VAs have been 2.75-3.25, VA jumbos have been 3.25-3.5, conforming conventional to include high balance 30yrs 3.25-3.375, and conventional 15s 2.625-2.875.  All depends on Wall St’s flavor of the day and all the normal variables.  Conventional jumbos, investment property mortgages, and cash outs are still out of favor with investors.  Bottom lines rates are great for normal purchases and refi’s.

I just hit my 6 mo window to refinance a VA...what’s the best way to monitor and check when I could lock in a lower rate?


Sent from my iPhone using Baseops Network mobile app

[Jon - Trident Home Loans]

3 minutes ago, di1630 said:

I just hit my 6 mo window to refinance a VA...what’s the best way to monitor and check when I could lock in a lower rate?


Sent from my iPhone using Baseops Network mobile app

Just email me and I’ll add you to my watch list.  Think we’ve been able to get everyone taken care of as long as we know what you’re looking for.  Sometimes we can do it immediately and sometimes we have to wait for the market to improve but we’re always watching for good deals.

Jon

jk@mythl.com

[Royal]

Jon,

Sorry if you've discussed this already, but what are the pros/cons in re-fi'ing out of a VA loan into a conventional or re-fi'ing into another VA?

[VMFA187]

Refinancing from a VA loan to a conventional allows you to open up your VA loan for another purchase with zero down. Refinancing into another VA makes sense if you get a good rate reduction. 

[Jon - Trident Home Loans]

On 5/12/2020 at 12:45 PM, Royal said:

Jon,

Sorry if you've discussed this already, but what are the pros/cons in re-fi'ing out of a VA loan into a conventional or re-fi'ing into another VA?

 

On 5/12/2020 at 2:35 PM, VMFA187 said:

Refinancing from a VA loan to a conventional allows you to open up your VA loan for another purchase with zero down. Refinancing into another VA makes sense if you get a good rate reduction. 

I agree.  Biggest con to refi-ing to a conventional is the potential increase in interest rate and PMI if you don't have 20% equity.  If it's a rental property than the rates are much worse and you need 25% equity in it to get the lowest conventional investment rate.  If you're thinking you want to switch to a conventional definitely do it well prior to moving so you can do it as a primary residence.

FYI...VA IRRRL rates are really good...like pre-COVID good at 2.75% right now with little to no points.  If you missed the last refi boom and have a VA at 3.25% or higher, 680+ credit score, primary residence and loan below 510,400 then now is you chance to get a great deal.  Let me know.

 

Jon

850-377-1114

jk@mythl.com

[stract]

20 hours ago, Jon - Trident Home Loans said:

 

I agree.  Biggest con to refi-ing to a conventional is the potential increase in interest rate and PMI if you don't have 20% equity.  If it's a rental property than the rates are much worse and you need 25% equity in it to get the lowest conventional investment rate.  If you're thinking you want to switch to a conventional definitely do it well prior to moving so you can do it as a primary residence.

FYI...VA IRRRL rates are really good...like pre-COVID good at 2.75% right now with little to no points.  If you missed the last refi boom and have a VA at 3.25% or higher, 680+ credit score, primary residence and loan below 510,400 then now is you chance to get a great deal.  Let me know.

 

Jon

850-377-1114

jk@mythl.com

well I fit that category, last refi with y'all closed at the end of Jan, though, so here's hoping that good news holds out another 2 months!

[Jon - Trident Home Loans]

On 5/14/2020 at 1:26 PM, stract said:

well I fit that category, last refi with y'all closed at the end of Jan, though, so here's hoping that good news holds out another 2 months!

I think rates will stay low for a while. 

To do an IRRRL you can't close until 210 days after the 1st payment is made on the old loan, your rate has to go down by at least .5%, your new principle and interest can't exceed your old P&I (only applicable usually if you want to do a reduced term..30yr to 15yr), and the break even point can't be longer than 36 months.

We can start the loan 45 days or so before the 210 day earliest closing date.

Jon

Edited June 26, 2020 by Jon - Trident Home Loans

[stract]

On 5/14/2020 at 12:55 PM, Jon - Trident Home Loans said:

We can start the loan 45 days or so before the 210 day earliest closing date.

Jon

just checked, first payment was 5 Mar, so I got a ways to go to meet those criteria.

[Jon - Trident Home Loans]

29 minutes ago, stract said:

just checked, first payment was 5 Mar, so I got a ways to go to meet those criteria.

Rates are at the bottom again and the economy is worse than before.  I think rates will stay low for a while.  Maybe small swings here and there but overall they should stay low to encourage the economic recovery we need to get back to normal.  Just hit me up towards the end of the year.

Jon

[DFRESH]

It seems like 2.75 has been a backstop for a while, any reason for that? Forecasts of potentially lower soon?

[Jon - Trident Home Loans]

17 minutes ago, DFRESH said:

It seems like 2.75 has been a backstop for a while, any reason for that? Forecasts of potentially lower soon?

Million $ question.  Mortgage Backed Securities investors on Wall Street set the pricing and banks/mortgage companies originate based on what each rate pays then add their overhead/profit margin.  Big banks can be greedy because of name brand recognition plus they have higher overhead, but MBS pay the same to everyone.  
 

Some days investors are willing to pay more and some days they are willing to take less all based on demand, risk, cash available, and other investment opportunities.  If the demand is there why would you take a lower rate of return?

 

 On the other end if you can make more money elsewhere or no one is buying then MBSs have to pay a higher rate of return to get buyers.  
 

There is no crystal ball, but I can tell you demand is very high at current rates/pricing.  The future of rates is tied to what the broader economy and Wall Street will look like over the next couple years.  Lots of opinions and opportunities out there right now.  
 

Jon

[Jake W.]

Hello

New to VA loans and got some questions or mainly looking at feedback or experiences. 
Here’s my basic situation as a reference. 
 

My wife and I have been looking at homes in the $270-300K range and recently came across one that we may like. Ideally, we would like to stay below 280k but could potentially go up to 290k due to current market situations. 
 

I’m curious if anybody has used 5/3 Bank as their lender before on a VA loan. I’m curious the experience and basic details. The loan officer instantly has tried to tell us that a VA loan wouldn’t be good for our situation. He explained that they have the 2.3% Funding fee to be added to the loan and the 1% originating fee due at closing. Current 5/3 VA rate was at 3%. Conventional loans rates are at 3.25%. Apparently, closing costs are the same for VA and Conventional loans with them. 
 

We simulated the house at 285k purchase and $37k down, property taxes at $9000, and the above rates. 
We found that the VA loan makes sense long term with a total savings of about 10k over a conventional loan. Monthly payments came out

VA loan= $1970

Conventional = $2185 

Again, VA seems to make sense but we have no experience with VA loans or any information from others that have used 5/3 Bank to do a VA loan. 
Comments, feedback, advice is greatly appreciated  

Jake W  

 

[VMFA187]

Still capped at $1m? 

[Jon - Trident Home Loans]

16 hours ago, VMFA187 said:

Still capped at $1m? 

It's 1M with zero down

1-1.5M 10% down

1.5-2M 15% down

Edited June 3, 2020 by Jon - Trident Home Loans
Corrected info

[PilotWife2]

nbkc can go to 1.5 million for VA

 

[PilotWife2]

17 hours ago, Jake W. said:

Hello

New to VA loans and got some questions or mainly looking at feedback or experiences. 
Here’s my basic situation as a reference. 
 

My wife and I have been looking at homes in the $270-300K range and recently came across one that we may like. Ideally, we would like to stay below 280k but could potentially go up to 290k due to current market situations. 
 

I’m curious if anybody has used 5/3 Bank as their lender before on a VA loan. I’m curious the experience and basic details. The loan officer instantly has tried to tell us that a VA loan wouldn’t be good for our situation. He explained that they have the 2.3% Funding fee to be added to the loan and the 1% originating fee due at closing. Current 5/3 VA rate was at 3%. Conventional loans rates are at 3.25%. Apparently, closing costs are the same for VA and Conventional loans with them. 
 

We simulated the house at 285k purchase and $37k down, property taxes at $9000, and the above rates. 
We found that the VA loan makes sense long term with a total savings of about 10k over a conventional loan. Monthly payments came out

VA loan= $1970

Conventional = $2185 

Again, VA seems to make sense but we have no experience with VA loans or any information from others that have used 5/3 Bank to do a VA loan. 
Comments, feedback, advice is greatly appreciated  

Jake W  

 

Are you looking to put money down?    There is the cost of the VA funding fee which is 2.3% x your loan value if a 1st time user and putting less than 5% down.  However, conventional has higher rate pricing and Private Mortgage Insurance (PMI) considerations  if yo put less than 20% down that you will not have with VA.  Sounds like 5/3 is charging a 1 point origination fee (1% x your loan value paid at closing), but other VA lenders like nbkc bank do not charge any lender fees (i.e. no points unless you choose to pay points to lower the rate, no lender junk fees like processing/underwriting/doc prep/admin), etc...  Not sure that 5/3 is a big VA player, and you may not be getting the best advice.  Feel free to reach out to me for a 2nd opinion!  Amy Paterson nbkc bank 913-253-0190 (19 years with nbkc bank as a high volume VA loan officer nationwide). 

 

[Jake W.]

Thank you both for the answers. Enjoyed the conversations. 

[Jon - Trident Home Loans]

40 minutes ago, Jake W. said:

Thank you both for the answers. Enjoyed the conversations. 

My pleasure!  Amy and NBKC are great too...not Trident great but I’d rather you use them over some bank who can’t even get the VA funding fee quoted right😉

Jon

 

[17D_guy]

Currently sitting with VA @ 3.25%, owe $176K, and have a 860 credit score.  Make sense to re-fi?  My original broker said it needs to get into the 2.75 range, but that was as of Saturday.

[Jon - Trident Home Loans]

We’ve been at 2.75 for that scenario for a couple weeks now.  It’s not the rate, it’s the breakeven point determined by the closing costs and the funding fee divided by the monthly saving that determines if it’s worth it or not.  
 

If you’re not going to own the house much longer than the breakeven then it wouldn’t make sense.  Just need to run the numbers and see if it makes sense or not.

 Every scenario is a little different based on where you live, if you have VA disability, and the loan amount.

Jon
 

 

[HuggyU2]

I just closed a VA IRRRL refi last week:  I was at 3.5%, and dropped to 2.75% with a .25 point cost.  No brainer.  The agent I used is the wife of a former military pilot.  PM me if you need the contact info, but you should be able to find that rate elsewhere (but not at USAA).  

[soupafly06]

Jon,

Is there any chance you and the Trident team will be able to service loans in Nevada soon (within the next month or so)?