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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
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

If you are a veteran, you may have received various e-mails and mailings recently from VA lenders promising extremely low interest rates- usually below 3%. Many savvy loan shoppers have contacted Indigo Mortgage with questions regarding these offers, and specifically, are they legitimate? The short answer from the experts at Indigo Mortgage is, unfortunately, that they are not.

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