VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida
VA Loans: All Your Questions Answered. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
A “VA loan” is a mortgage guaranteed by the Veterans Administration. It was created in 1944 and signed into law by President Franklin D. Roosevelt.
VA loans provide veterans and/or their surviving spouses with a federally guaranteed mortgage with zero down payment, otherwise known as 100% financing.
It’s one of the few places a prospective homeowner can still buy a house with zero down, now that the FHA requires 3.5% down and most conventional mortgage lenders require 10% or more.
The loan program also referred to as the GI Bill, has been highly successful and has helped millions of American veterans and their families acquire a home.
Look for the latest mortgage rates in Miami Fort Lauderdale Florida from dozens of lenders, updated daily.
VA Loan Eligibility Requirements. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
VA loans have varying eligibility requirements depending on the duration and type of military service performed. Veterans who served on active duty for 90 days during wartime, or 181 or more continuous days during peacetime are generally eligible.
There is also a two-year requirement if the veteran enlisted and began service after September 7, 1980, or if the veteran was an officer and began service on October 16, 1981. Additionally, there is a six-year requirement for National Guards and reservists along with other specific criteria.
Unremarried surviving spouses of a service member missing in action or a prisoner of war may also be eligible. The best way to see if you’re eligible for a VA loan is to visit the following website, which lists all eligibility criteria.
You can apply for and obtain a VA loan with any bank or lender that participates in the VA home loan program. To prove eligibility, you will need to get a Certificate of Eligibility from the VA, which your bank may be able to complete for you.
Keep in mind that a VA loan must be used for personal occupancy only (no investment properties), and can only be issued by qualified banks and lenders.
Types of VA Loans. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
You can get your hands on a VA purchase loan, a VA refinance loan, or a VA streamline refinance, the latter being for those with existing VA loans that want to lower their interest rates in Miami Fort Lauderdale Florida without jumping through eligibility hoops.
Prospective homebuyers can borrow up to 100% for a purchase without paying private mortgage insurance and existing homeowners can borrow up to 100% loan-to-value (LTV) for rates in Miami Fort Lauderdale Florida and term refinances (or 90% for a true cash-out refinance).
There’s also the streamlined VA refinance program, known as an Interest Rates in Miami Fort Lauderdale Florida Reduction Refinancing Loan (IRRRL), which has no maximum LTV.
VA loans can be both fixed-rates in Miami Fort Lauderdale Florida mortgages or adjustable rates in Miami Fort Lauderdale Florida mortgages, with the 30-year fixed, 15-year fixed, and 5/1 ARM common options.
A VA funding fee of 0% to 3.3% of the loan amount must be paid to the VA and can be financed on top of the total loan amount.
Benefits and Advantages of VA Loans. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
VA loans come with a number of benefits and advantages that can make them a solid choice above conventional options. Let’s take a look at some common Q&A.
Do VA loans require a down payment? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
No. Perhaps the biggest advantage is the lack of a down payment requirement, which was previously mentioned.
What are VA loan rates in Miami Fort Lauderdale Florida like? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
Additionally, mortgage rates in Miami Fort Lauderdale Florida on VA loans are typically cheaper than those on conventional mortgages, though that will vary based on your unique borrowing profile. In general, you may find that VA loan rates in Miami Fort Lauderdale Florida are roughly .25% to .375% lower than conventional rates in Miami Fort Lauderdale Florida.
So you could wind up with lower rates in Miami Fort Lauderdale Florida and less out-of-pocket expenses, which is certainly helpful for the cash-strapped borrower.
Additionally, VA loans are generally easier to qualify for than other mortgages, though there may be some increased red tape proving eligibility and so forth.
Is there a maximum VA loan amount? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
Once again, the answer is no. The VA does not limit how much you can borrow, though there are limits on how much liability the VA is willing to assume. Put another way, lenders won’t go above the VA county loan limits, which vary from county to county.
The VA loan limit is aligned with the conforming loan limit of $417,000, though there are high-cost counties that go much higher, such as Arlington at $692,500, Los Angeles at $687,500, and San Francisco at $1,050,000
Borrowers can get loans up to these amounts without a down payment. But if the loan amount exceeds these limits, a down payment may be required. A down payment may also be required if a veteran has already used their entitlement and it hasn’t been restored.
Do VA loans require a minimum credit score? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
Aside from not needing a down payment, there isn’t a minimum credit score requirement for VA loans. However, most lenders that originate VA loans still require a minimum credit score, such as 620 or higher. So it can be somewhat misleading.
That said, you should still do your best to stay on top of your credit if you want the lowest mortgage rates in Miami Fort Lauderdale Florida possible
What credit score do I need to get a mortgage?. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
Do VA loans require mortgage insurance? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
Finally, VA loans do not require you to pay mortgage insurance, which can obviously increase the cost of the monthly mortgage payments and the overall cost of your mortgage.
However, the VA does collect a funding fee, which insures your loan against default.
Do VA loans cover manufactured homes? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
This always seems to be a popular mortgage question, regardless of loan type. The short answer is yes, you can use a VA loan to buy a manufactured home and/or lot. However, the trick is finding a lender out there willing to provide VA financing for a manufactured home.
So it’s a yes according to VA eligibility, but a maybe in terms of finding a lender willing to extend the loan. In short, it might require a bit more legwork to track down someone willing to offer the financing.
Do VA loans require an appraisal? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
If purchasing a home with a VA loan, an appraisal will be required. This is for your protection too to ensure the home is worth what you’ve agreed to pay for it.
An appraisal is also required if you’re attempting to pull cash out of your home. Conversely, if you’re simply looking to reduce your mortgage rates in Miami Fort Lauderdale Florida via an IRRRL, no appraisal is required.
Do VA loans have closing costs? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
Like all other mortgages, VA loans have closing costs, which is completely standard and normal. However, the VA does have strict rules when it comes to closing costs. Only certain fees are considered “allowable,” including:
– Loan origination fee (typically 1% of the loan amount)
– Loan discount points (optional to lower your interest rate)
– Credit report
– Appraisal fee
– Hazard insurance and property taxes
– VA funding fee
– Title insurance
– Recording fee
If there are other fees connected to the loan, they cannot be paid by the borrower. So if it’s a purchase, the former owner could provide seller concessions, the real estate agent could provide a credit, or the bank could provide a lender credit to cover the non-allowable closing costs.
Do VA loans require an escrow account? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
The VA does not require lenders to maintain escrow accounts, though most impose them to ensure borrowers have the necessary funds to pay hazard insurance and property taxes in a timely manner.
In other words, the VA doesn’t explicitly require escrow accounts, but the lender you ultimately work with probably will, so there’s not much way around it. Additionally, there is typically a fee to waive escrows, so it might be cheaper just to escrow.
Do VA loans require reserves? VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
No, VA loans do not require reserves, which is another plus. However, if the property being financed is a multi-unit property and you’re using rental income to qualify, six months PITI will be required for reserves.
Additionally, those with non-traditional or insufficient credit may be required to provide reserves.
In summary, if you feel you meet the eligibility requirements for a VA loan, be sure to include this loan in your mortgage search. You may find that another type of home loan is more beneficial, but you should compare all options to be absolutely certain.
In Summary. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
- No down payment required (100% financing OK)
- Rates No maximum loan amount
- Rates No minimum credit score
- Rates No max DTI ratio
- Rates Assumable
- Rates No mortgage insurance required
- Funding fee can be financed
- Max 1% origination fee
- Limited closing costs
- No prepayment penalties
- Max loan term 30 years
The VA home loan benefits are many but the most popular features are the no-money-down component, relaxed qualifying guidelines, and reduced closing costs. Qualifying VA borrowers are limited to the types of closing costs they’re allowed to pay, such charges for appraisals, credit reports and discount points and origination fees among others.
Check today’s VA home loan rates in Miami Fort Lauderdale Florida. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
Among these fees, discount points and origination charges are often confused with one another, as both are listed as a percentage of the loan amount. Let’s take a look at the differences between the two, and how to choose the right rates in Miami Fort Lauderdale Florida and fees based on your situation.
Discount Points. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
A discount point commonly called a “point” is a form of prepaid interest to the lender and expressed as a percentage of the loan. One point on a $200,000 VA loan is $2,000 and two points equal $4,000 and so on. The discount point is so-called because it discounts the interest rates in Miami Fort Lauderdale Florida on a veteran’s home loan.
For example, a borrower has an option to pay no points, one point or two points when selecting interest rates. Rates in Miami Fort Lauderdale Florida are even available with one-half, five-eighths and three-quarter point offerings. The more points paid, the lower the interest rates in Miami Fort Lauderdale Florida received.
Get rates in Miami Fort Lauderdale Florida and discount point quote for your loan.
Discount Points on Purchase Transactions. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
Say the VA $200,000 loan used to buy a single family home has a 30 year fixed rates in Miami Fort Lauderdale Florida today of 3.25% (APR 3.53%) with no points. The principal and interest payment are $870.41. If the borrower lowers the interest rates in Miami Fort Lauderdale Florida to 3.125% (APR 3.48%) by paying one point, the principal and interest payment are reduced to $856.75 for a savings of $13.66 per month.
Does it make sense to pay a point in this scenario? To find out, divide the monthly savings into the point paid. In this instance, divide $13.66 into $2,000. The answer is how many months it takes to recover the additional amounts paid in points, or just over 146 months. That’s more than 12 years. In this example, it makes sense to take the slightly higher rates in Miami Fort Lauderdale Florida and keep the $2,000.
Click here for a free VA rates in Miami Fort Lauderdale Florida and point quote.
Discount Points on a VA Streamline Refinance (IRRRL). VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
If you’re refinancing a current VA mortgage, then you’ll encounter the Interest Rates in Miami Fort Lauderdale Florida Reduction Refinance Loan, or IRRRL, commonly known as the VA streamline. The VA streamline is a reduced documentation refinance program that requires no paycheck stubs, tax returns or employment verification.
Check today’s VA streamline refinance (IRRRL) rates in Miami Fort Lauderdale Florida.
Should points be used to lower an IRRRL rates? The same logic should be used as with the VA home purchase scenario. Divide the monthly savings into the additional upfront cost. If it takes longer than two to three years to recover the extra expense, it’s probably better to take the slightly higher rates.
The exception would be if you absolutely know you will not sell or refinance the house until it’s paid off. But it’s hard to be that certain. Most people sell or refinance within seven years.
Let’s look at how to calculate a payback period. Assume it costs two points, or $4,000, to reduce a $200,000 VA streamline rates in Miami Fort Lauderdale Florida by 0.50%. The rates in Miami Fort Lauderdale Florida reduction would yield about a $55 per month savings. Dividing $4,000 by $55, it would take 72 months or 6 years to make back the money.
But lets things changed and now it only costs one point to reduce the rates in Miami Fort Lauderdale Florida by 0.75%. Now you can reduce your payment by $110 per month for only $2,000 in extra upfront fees.
Suddenly it pencils out. It only takes 18 months to earn back the extra cost, and all savings after the 18-month mark is extra money in your pocket.
Deciding whether to pay or not pay a discount point in conjunction with any VA loan is simply a matter of doing some quick math and comparing that to your long-term goals with your home and mortgage.
Origination Fee vs. Discount Points. VA Loan Refinance Mortgage Rates in Miami Fort Lauderdale Florida.
An origination fee is a fee that the VA borrower pays to the VA lender. It is usually expressed as a percentage of the loan amount. But a loan origination fee does not directly lower your rates, unlike a discount fee. Basically, the VA origination fee is the mortgage broker’s profit, to pay for overhead, pay for employees, and otherwise keep the office running and continue to offer VA loans.
The most common amount of an origination fee is one percent. On a $200,000 VA loan that would be $2,000.
An origination fee can be charged to a VA-qualified borrower in lieu of other charges associated with processing, underwriting and overseeing the loan through the VA approval process. Getting a loan through the process can be quite expensive, which is why many lenders charge the origination fee.
Talk to a VA-approved lender about origination fee and discount points.
Should You Take a Higher Rates in Miami Fort Lauderdale Florida and Receive A Lender Credit?
Just as lenders can lower interest rates in Miami Fort Lauderdale Florida by charging the borrower a point, the lender may also provide a credit toward a borrower’s closing costs by increasing the interest rates. Determining whether or not to increase rates in Miami Fort Lauderdale Florida to offset closing costs is decided in the very same fashion as paying points: cost vs. benefit.
For instance, a borrower could select a rate in Miami Fort Lauderdale Florida that’s 0.25% higher than market rates in Miami Fort Lauderdale Florida at the time. In exchange, the lender can offer a credit of, say, one point, to help pay for closing costs like appraisal, title, and processing fees.
On a $200,000 mortgage, the borrower would receive $2,000 toward closing costs but pay $30 more per month on their mortgage. This option could work well for home buyers without enough money for closing costs.
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