VA Refi?

[CS1983]

Keep getting mail outs like the attached pic with offers to refi for lower interest rate, etc.

Are these things legit or a scam?

Our interest rate right now 4.125%, so a lower one would certainly be nice.

If anyone has any other suggestions as far as routes to take aside from these mail out companies, that would be appreciated too.
71662

[Lurch]

Does it need to be a VA loan? Do you have 20% equity?

[Great-Kazoo]

For the mailers, call the place it's addressed from. They will remove you from their mailing list. May take 6 + months or more.

Easiest way is to call the source.
http://www.benefits.va.gov/homeloans/contact_rlc_info.asp

[CS1983]

Does it need to be a VA loan? Do you have 20% equity?

We have a VA loan. I could care less who a refi is through, so long as it wouldn't put me in violation of VA terms.

We purchased a few months ago, so I doubt we have 20% equity.

[mjzman]

Read the small print on the back of the page. Most of these are ARM's. Ones I have received are three year ARMs, meaning after three years the rate will go up by 1% each year and end up in the 8% neighborhood. These are the kinds of loans that caused the real estate crash ten years ago. Heading that way again.

[Bailey Guns]

You don't need 20% equity. If you can beat the rate, do a VA IRRRL (Interest Rate Reduction Refinance Loan). Also called a streamline refi. The VA doesn't require an appraisal, income verification or many other things they would require for a new loan (though the particular lender/underwriter may require these things). Pretty much any lender can do an IRRRL. You still have to pay another funding fee (unless you're in one of the exempt categories...ie: disabled, etc...). So do the math to see how long it will take you to recoup the costs of the loan at the new rate/payment to help decide if it's worth it.

Like anything, shop around for the best rate and costs as they vary wildly. A rule of thumb...look at the difference between the interest rate and the APR. The higher the difference the more you're going to pay in fees. Not a scientific method but, like I said, a quick and dirty way to estimate how much the loan is going to cost you.

VA IRRRL (http://www.benefits.va.gov/homeloans/irrrl.asp)

[CS1983]

Am in an exempt category, so I suppose no funding fee.

Thank you for the replies and PM's.

[brutal]

Threadjack.

I've been putting off way too long some overdue remodeling and have been considering a cash out refi to fund it.

Would prefer to just cut and run to something better, but the market and life just isn't right for a move for us right now.

Kitchen $50K
master bath $8k
sub master bath $7k
windows $12k
perhaps siding $20k
back yard $8k
Misc $15K

Not interested in an equity line, in fact, I already have one I'd like to pay off as part of the refi ($20k). Something I got to do some upgrades many many years ago then a major life event fucked things up.

My conundrum is that I have yet to talk to any contractors to get estimates. Only the kitchen would be major, removing a wall, all new tile flooring. New appliances (nothing too fancy).

Baths just need new shower tile, tub/tile, vanities.

Rooms are not big.

14 or so windows, nothing fancy. This is the big push right now, so many seals gone and winter is coming (again). I could easily do these from savings, but prefer to keep that intact.

I can do a lot of the tear out and perhaps some finishing work myself with the right contractor. I am kinda picky on fit/finish.

Can I just ballpark it and go for the refi with a rough budget or do I need to have estimates in hand? I have significant equity and would be doing the cash out part for more than what I currently owe. I have stellar credit. I'm thinking in the neighborhood of +$120-140k but might be off on a rough estimate for the rooms?

Last refi I did in 2012 was a streamline rate reduction with Chase. I'm currently @3.375 fixed with 10 years remaining on a 15yr. The one before that was through a Broker that got me the Chase loan. I've been really happy with them so far, and with my credit don't really fear they will sell the note. I'd like to keep the payment similar to the 1st + HELOC, so I'm sure I'll have to up the term.

I'm a vet, but have only used the VA home loan program for our first house. Never saw much benefit from it after that.

I welcome any advice public or private.

[DenverGP]

Threadjack.
I've been putting off way too long some overdue remodeling and have been considering a cash out refi to fund it.


Wife and I just did the same thing, refi'd our VA loan to drop the rate quite a bit, with cash back for various home improvements that had been waiting for years, along with paying off a home equity line of credit.

We let them know we'd be paying off and closing the line of credit, but they never asked about the home improvement stuff. As far as they were concerned, we refi'd and got a pile of cash back to do whatever we wanted.

We did have to go thru a new appraisal, had some issues with some of the VA requirements (no peeling paint, no rotted siding, etc) but overall was an easy process. Took a long time to get the appraisal done, was told VA appraisers were very backlogged at the time (about a year ago).

[TheGrey]

Going through the same thing, and we're almost finished *cross fingers* with it. Paying off debt, and some leftover for replacing AC, furnace, and water heater. Ballparking it was fine for the bank. but do yourself a favor: if you've got it in equity, ballpark it and throw a bit more on top, just in case. It never hurts to have a little extra, because improvements tend to cost a bundle.

[brutal]

Going through the same thing, and we're almost finished *cross fingers* with it. Paying off debt, and some leftover for replacing AC, furnace, and water heater. Ballparking it was fine for the bank. but do yourself a favor: if you've got it in equity, ballpark it and throw a bit more on top, just in case. It never hurts to have a little extra, because improvements tend to cost a bundle.

Thanks, based on DougCo taxes and comps, I probably have $250k or so equity. This was part of our retirement nest egg and I was hoping to not have to do this, but I need to make an investment in it now. The sorely needed updates and the back yard mess are what's hurting me for resale if anything.

I realize I'll probably only see 50% of my investment, but I'm tired mostly of the shitty kitchen and windows. I can live with the baths if need be, or even try to tackle most of those myself.

I did forget to budget AC! What was I thinking? lolz.

[DenverGP]

We replaced furnace and windows, and added a new AC. Had budgeted to pay for new windows, but luckily insurance picked up most of that bill.
Still planning to do some more siding repairs, and paint, and possibly new carpet. And we've upgraded oven/range and dishwasher so far in the kitchen.

[Bailey Guns]

I realize I'll probably only see 50% of my investment, but I'm tired mostly of the shitty kitchen and windows. I can live with the baths if need be, or even try to tackle most of those myself.

Before moving we spent a small fortune having someone install new quartz countertops ($8k), paid a contractor $12k to remodel a bathroom, and paid a carpet guy almost $2k for carpeting in two rooms and a HVAC contractor $2.4k for a furnace install. Then spent $5k in materials to rebuild the deck (did that myself) and about $1.5k to rebuild a dormer on the rear of the house that was badly weathered (did that myself, too). Then another $1k on paint. $2k on new appliances. We did all this to sell the house. It was so nice when we were done we had second thoughts on selling.

Lesson learned? Fix up your home for YOU so YOU can enjoy it. It's worth every penny. We were lucky in the sense that we didn't have to use equity in the house to finance the projects. The money mostly came from a 5 year battle we had with the IRS and eventually won...if you can call getting our own damn money back from the IRS "winning". Fuckers.

[TheGrey]

Thanks, based on DougCo taxes and comps, I probably have $250k or so equity. This was part of our retirement nest egg and I was hoping to not have to do this, but I need to make an investment in it now. The sorely needed updates and the back yard mess are what's hurting me for resale if anything.

I realize I'll probably only see 50% of my investment, but I'm tired mostly of the shitty kitchen and windows. I can live with the baths if need be, or even try to tackle most of those myself.

I did forget to budget AC! What was I thinking? lolz.

I salute you, sir. That's mighty impressive. :)