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Veterans: Protect Yourself from Predatory VA Lenders

Thursday Mar 5, 2015
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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.

Generally speaking, any rate below 3% on a VA mortgage is likely to be an ARM, or Adjustable Rate Mortgage. These lenders are not forthcoming about the true rates offered in these mortgages, and many veterans can end up being stuck in an adjustable rate mortgage that is not truly to their benefit. These types of mortgages can force veterans to pay thousands of dollars in discount points to buy the rate down.

Recently, The Consumer Financial Protection Bureau fined several of these institutions for misrepresenting themselves to veterans as VA endorsed lenders, though the VA has not endorsed any of them. Veterans will be better served by contacting and working with local lenders who understand the nuance of mortgage loans for veterans and can work closely with them. Generally speaking, it is smart to avoid workign with any out of state lender, or to engage with businesses that send out these e-mails and mailers.

Have more questions? Get in touch with us at Indigo Mortgage!

Indigo Mortgage is a locally owned and operated company, serving homebuyers in Colorado and New Mexico. For questions about selecting a mortgage lender, contact Indigo Mortgage in Colorado Springs at (303) 571-5700. Indigo Mortgage in Colorado proudly focuses on VA Loans. They are licensed by the Nationwide Mortgage Licensing System (NMLS #188348), and can provide loans anywhere in Colorado and New Mexico.

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