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Monday, 19 June 2017 17:44

Are Low, Low VA Loan Rates Real?

At Indigo Mortgage, we frequently have veterans contact us and ask about the emails and post cards they receive that advertise VA loans with interest rates below 3%. They want to know if these low, low interest rates are really legitimate? The short answer is no. Here’s why.

Any rate below 3% on a VA mortgage is most likely going to be an adjustable rate mortgage (ARM), although that may be buried in such fine print that you can't find it. Deceptive lenders fail to disclose to the borrower that these unbelievably low rates are for 3/1 or 5/1 ARM’s, meaning that the loan begins with a fixed rate for just 3 or 5 years. Following that introductory period, then the interest rate might adjust each year after that. Over time, what sounded like a good deal at the beginning may turn out to be a very, very high interest rate in comparison. At Indigo Mortgage, we encourage veterans to ask every question you can think of; we do not typically advocate an adjustable rate mortgage, and certainly not if that’s not what is in the borrower's best interest. In many instances, we've seen veterans end up paying thousands of dollars in discount points to buy their interest rate down below 3%

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We have found that many of the online or national lenders who claim expertise in VA lending are deceitful and do not care about their borrowers, they just want to make fast money even if that means exploiting the veteran. In fact, in recent years, the Consumer Financial Protection Bureau has fined several of these companies for presenting themselves as VA endorsed lenders, when the VA had never given that endorsement.

Veterans would be better served by working with a trusted and experienced VA mortgage lender like Indigo Mortgage. We are always happy to educate borrowers and help you assess your loan options. Always ask your lender in writing for assurance as to whether the rates they’re quoting are fixed or adjustable, as well as what the origination and discounts point charges are for any rate.

As always, shop around for the best VA loan, and contact Indigo Mortgage for help!

Published in Blog
Monday, 19 June 2017 17:26

VA Jumbo Loans for Veterans

A VA Jumbo Loan is defined as a mortgage loan that exceeds the typical VA Loan limit which is set at $424,000. Jumbo loans are a terrific option for veterans now because interest rates are still very low on 30-year fixed rate loans. For veterans that have 10% or more in VA disability, funding fees are also waived.

At Indigo Mortgage, our loan officers are very experienced in helping veterans with VA Jumbo Loans. These loans can consolidate first and second mortgages, refinance short term jumbo adjustable rate mortgages (ARM) into a conventional term, or be used to finance a major home improvement for the home.

If you are interested in a VA Jumbo Loan, please call on of our loan officers and ask questions. At Indigo Mortgage, we are honored to serve our military vets and have helped thousands with their VA loan. We are always happy to provide answers and supply borrowers with everything you need to know to make an informed loan decision on a VA loan. It’s important to shop around and compare options, and we have historically been able to find lenders with the lowest fees and rates on the market. If you’re considering a VA Jumbo Loan, call Indigo Mortgage today!

Published in Blog