Our Veterans deserve better
February 2, 2019
If you have a VA loan, I bet your phone is ringing off the hook with offers to "save you money." Or at least, you are receiving multiple postcards by mail, encouraging you to "Refinance NOW!"
As a prudent consumer, you already know that anyone who is calling to sell you something is doing just that: Selling you something. If you have not initiated the contact, beware. VA loans are big business, and these offers are not always in the best interest of the Veteran.
Here's what contributors to the Rob Chrisman Leadership Report are noticing.
"Rob, are you hearing that some vets are paying $14,000 in fees to obtain $20,000 in their own cash from a refinance, thus having their unpaid principal balance go up by $34,000? That sounds like a crime to me."
"There is some real bad stuff going on now with lenders churning VA cash outs, telling veterans that this is a benefit they have earned, yet charging the veteran 4-5 points in total fees to get a little bit of their equity. The VA funding fee on a cash-out loan is 3.3% by itself, so they are paying a ton of fees, which is just added to their loan balance. In some cases, they are being charged more in fees than the cash they are getting back. Total rip-off of our veterans, and the most disgusting part is the lenders doing this are wrapping themselves up in the flag, saying they are sticking up for veterans when they are just ripping off their face."
Harsh words, but it is a serious concern. VA refinance loans are a great benefit, and in some cases you can borrow up to 100% of your home's value. If you need that, great. But please be wise in doing it.
Your local mortgage advisor has plenty of low-fee opportunities in doing these loans. Too, we don't want to run away when we see you at the grocery store, so we are looking out for your best interest in structuring your refinance. Please seek an experienced local professional if this is a loan scenario that interests you.
Tammy Engel is your local Mortgage Advisor. She's been working for your best interest since 1990, and can be reached at 661/822-7325 for your next purchase, refinance, or reverse mortgage. NMLS #235051, CaDRE #01273839