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Tuesday, 12 September 2017 16:12

Low VA Rate Mailers

Indigo Mortgage is proud to serve the VA loan needs of Colorado veterans. Because we work with so many of our veterans, we have a unique understanding of their concerns and needs. So, when veterans call Indigo Mortgage and say they received a letter from a mortgage lender offering them unbelievably low rates, we always check to see if those offers are legitimate, because, as we say, no one cares more about you and your loan than we do.

Many lenders will claim they can offer interest rates as low as 2.5% or 2.75% on 30-year mortgages. They send out mailers advertising these rates to veterans. Upon further investigation though, these are not 30-year fixed mortgages. They’re only fixed for 3-5 years, and then after 3-5 years, these interest rates are adjusted – which will almost always raise your monthly payment.

In other cases, the rate may be fixed for 30 years, but borrowers pay a full 2 points in discount and origination fees! That’s a full 2% of the loan – on a $200,000 mortgage, that means a veteran would pay an extra $4,000 just to buy the interest rate down to below 3%. Both of these tactics are misleading. As a general guideline, veterans can expect an interest rate in the mid 3% range for 30-year VA loans, without any origination, discount or lender fees. Shopping around is important because it can mean a .5-1% difference, depending on the lender.

Keeping your loan local means personalized customer service. When you work with Indigo Mortgage for your VA loan, we look for the best rates and terms, without any unnecessary fees. Contact us to learn more about VA loans!

Published in Blog
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 17:36

VA Loan Basics

At Indigo Mortgage, we are honored to serve our nation's veterans as they purchase or refinance with a VA loan. Our VA loan division closes hundreds of VA loans each year and our loan officers are very experienced in the VA loan process. Here’s some basic information for veterans who are interested in this type of loan.

Borrowers can have multiple VA loans. If the veteran has paid off all previous VA loans, the vet can take out another loan. In fact, a veteran can have two VA loans at the same time. Borrowers can split their VA entitlement and purchase two properties, as long as both loans do not exceed the combined total of $417,000, and the new loan is more than $144,000, as well as the new VA loan being for an owner-occupied home.

VA allows 100% cash-out on refinanced loans. If you've had a lender tells you that the VA will only allow 90% cash out, you've come to the right mortgage broker! At Indigo Mortgage, we offer 100% cash out, without compromising our low rates.

VA now allows jumbo mortgages as well, allowing borrowers to get mortgage loans over $417,000.

The VA never requires mortgage insurance for the loan, but there is a funding fee. However, that funding fee can be waived if the veteran has a disability of 10% or more.

Be wary of lenders offering outrageously low rates for VA loans. Typically, when a lender offers unbelievably low rates, they’re adjustable rate mortgages, not fixed rate mortgages or they have very high fees. These types of mortgages can be very expensive to buy down, and aren’t really worth it.

When you’re shopping for a VA loan, remember to shop several mortgage sources. A mortgage broker like Indigo Mortgage that has extensive experience in VA loans can often save you money and time!

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
Wednesday, 23 September 2015 00:00

Indigo Mortgage is an Approved VA Lender

One of our mortgage loan specialists recently spoke with a military veteran who had called the Veterans Administration to ask about his VA benefit as he prepared for a new home mortgage loan. After they answered his questions, the VA representative told him to exercise caution when calling out of state and national bank lenders and advised him to shop with known, experienced, approved VA lenders first.

Published in Blog
Wednesday, 23 September 2015 00:00

Indigo Mortgage Offers VA Jumbo Loans

A lot of vets considering a home purchase don't know that the Veterans Administration offers a jumbo loan or how those loans work. A VA jumbo loan can be used when a veteran needs a mortgage loan of $417,000 or more.

Published in Blog

At Indigo Mortgage, we close more VA loans than any other company in New Mexico. We understand veteran’s requirements and work to make the process smooth for all veterans who have served our country.

There are several options a veteran has in order to take advantage of the VA cash-out loan program:

  1. When a veteran has an existing mortgage that is not currently a VA loan, but wants to refinance that mortgage into a lower rate using the VA:
    --The VA will allow up to 100% of the value of the home to do the refinance. So if the veteran owes 200K on the home and the value is 200K they can take advantage of the VA loan.

  2. If a veteran wants to pay off a 1st and 2nd mortgage:
    --The VA will allow up to 100% of the value to pay off both loans.

  3. If the Veteran wants to do a debt consolidation:
    --The VA will allow 100% of the value IF all of the proceeds go to pay off debts. It will not allow 100% if the veteran wants cash in hand.

  4. If the veteran wants cash-out to do home improvements, or just cash-in hand
    --The VA will allow 90% of the loan to value in this case.

The VA does not have any monthly mortgage insurance so there is never any PMI on any Veteran loans but the VA does have a funding fee. If the veteran has used their benefit before, and wants to use it a second time the funding fee is 3.3% which is financed and added to the top of the loan. If the veteran is a 1st time user of the eligibility then the funding fee is 2.15%. Now if the veteran is receiving 10% or more in disability then all funding fees are waived.  As you can see, there are many options for the veteran, so I suggest they just call the VA Mortgage loan center at Indigo Mortgage and let one of our VA loan officers answer any questions.

Published in Blog