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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
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