Louisville Kentucky First Time home Buyers programs including, FHA, VA, KHC, and USDA, Rural Housing Zero Down home loans–Our site is updated daily for Louisville Kentucky first time home buyers with the best programs and rates
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Do you have an existing Louisville Kentucky VA Home Loan or conventional loan that you are interested in refinancing? While interest rates are still low, there are many advantages to refinancing now in order to get a lower interest rate, take cash out of the equity in your home, consolidate credit, or make home improvements. If you are interested in refinancing with a Kentucky VA Loan, the VA has programs that can assist you. Below are some questions other people have asked about the Louisville Kentucky VA Refinancing programs. Follow the headers to find information about Louisville Kentucky VA Refinancing. If you cannot find an answer here, a VA Loan Specialist can be contacted online or by phone to answer all your refinancing questions.
An IRRRL is the VA’s Interest Rate Reduction Refinancing Loan, also known as a VA Streamline Refinance. An IRRRL is a loan that refinances your existing VA Loan into a new VA Loan with a lower interest rate, or from an adjustable rate mortgage (ARM) into a fixed rate mortgage. A Certificate of Eligibility is not required for an IRRRL.
Not necessarily. In order to qualify for an IRRRL, the VA requires you to obtain a lower interest rate if you are going from a one fixed rate mortgage to another fixed rate mortgage, but if you are going from an adjustable rate mortgage to a fixed rate mortgage, the VA will allow you to refinance to a higher interest rate.
Since you are refinancing your adjustable rate mortgage into a fixed rate mortgage the interest rate may be higher initially, but you will save money over time. With adjustable rate mortgages you may get a lower interest rate than a fixed rate mortgage for the first few years, but after that your interest rates increase and you are paying higher rates than you would with a fixed rate mortgage. This is why the VA allows you to refinance into a higher fixed rate of interest on your mortgage before your adjustable rate on your current mortgage increases.
Yes. As long as you are refinancing your VA-guaranteed mortgage, then you can use this program to get more favorable loan terms and save money over the long run. If you’re ready to get started with your VA Refinance, contact a VA Refinance Specialist now.
None. The VA allows you to finance all closing costs associated with refinancing into your new mortgage. Your lender may have some fees, but you will need to consult them to find out what they expect you to pay up front, if anything.
No. If you want a new lender, you can choose from any mortgage lender on the VA-approved lender’s list. Make sure that you shop around for your refinancing loan. By going to several lenders, you will get more offers and you can choose the best loan terms for you and your family. Be careful of lenders that try to deceive you into thinking they are the only lender that can finance a VA IRRRL. The VA has a long list of approved lenders, and you should shop around.
The VA does not require another credit check and appraisal because it has already approved you for the loan guarantee in the first place. However, lenders usually do require a credit check and appraisal when refinancing because they need to make sure you are still credit worthy and the property still has a higher market value than their maximum loan amount. For more information about this, check out VA Appraisal, Qualification and Approval FAQ’s.
No. You have already been approved by the VA for your home loan guarantee, and refinancing does not require a Certificate of Eligibility.
The VA only requires a 1.5% funding fee of the value of your new loan. There are no other fees involved with the VA. If a lender tries to tell you that the VA charges extra fees you should contact the VA to see if something has recently changed and, if not, you should find a new, ethically responsible lender.
The VA has the following eligibility requirements for an IRRRL:
You are allowed to include up to $6,000 in your refinancing loan for the purpose of energy efficient home improvements. Any other home improvements are not eligible.
No. An IRRRL from the VA is only for the purposes of obtaining a better interest rate on your mortgage loan in order to save you money over time.
This is the type of refinancing loan the VA offers for those Veterans who want to take cash out of the equity in their homes. You must be refinancing an existing VA Loan in order to use the VA Cash Out Refinancing Program.
Anything you want. Make sure you consult your lender to see if they have any restrictions on what you can use the money for.
Yes. As a matter of fact, many lenders prefer that you do consolidate all of your debt into your new loan because it makes you less of a credit risk for them.
Your home’s value is on a Certificate of Reasonable Value, and you are allowed to take up to 90% of this amount. On top of this you are also allowed to finance the VA funding fee and include up to $6,000 for energy efficient home improvements.
This depends on your lender. The VA allows it, and many lenders will also allow you to refinance as long as you are financially able to make the new payments. If you are a delinquent on your current mortgage because of excess debt, the lender will probably require you to consolidate that debt into your new mortgage loan in order to lower you interest rates on your unsecured debt and give you a more affordable monthly payment.
The highest amount the VA will guarantee a Cash Out Refinance mortgage for is $36,000.
More information on refinancing options is available through the Department of Veterans Affairs or by contacting your VA Regional Loan Service Center.
How Can I Pay Off My Mortgage Faster? Basic Concepts—–Louisville Kentucky Mortgage Refinance
How Can I Pay Off My Mortgage Faster? Basic Concepts
A 30 year mortgage, if paid monthly, is about 60% paid off in 24 years. If the borrower makes one extra monthly payment per year on a 30 year mortgage, the entire mortgage is paid off in 24 years. That’s six years of vacations, helping your children with college, or bolstering your retirement accounts.
To understand this, let’s look at how your mortgage payment is determined. We’ll use a $200,000 mortgage at 6.0% for our example.
The monthly payment would be $1199.10.
The interest payment is $200,000 * .06 = $12,000/ 12 months = $1000
The principal payment would be $199. That’s right. After one month you will have paid $1199.10 and your balance will have gone down $199.
A lower principal balance = a lower amount of interest. Each month the amount of interest paid goes down and the amount of principal paid goes up.
But who has an extra $1200 to make that extra payment? You do.
Call me today for your free refinance mortgage analysis..Rates are low and it is time to refinance
I can be reached locally at 502-905-3708 or email me your questions to firstname.lastname@example.org
Why Are More Kentucky Mortgage Loans Not Being Refinanced?
Why Are More Kentucky Mortgage Loans Not Being Refinanced?October 25, 2010
While mortgage interest rates are at their lowest levels since 1945, millions of mortgages that carry interest rates of 6% to 9% or even higher, are not being refinanced. The reasons for this involve Fannie Mae and Freddie Mac, the two secondary market giants now in Government conservatorships, in a central role.
Fannie Mae and Freddie Mac Have Become Excessively Restrictive
Adam was turned down for a refinance because he did not meet the new stiffer underwriting and pricing requirements set by the agencies in their standard programs. His credit score, which was acceptable when he got his loan before the crisis, is not high enough to meet the new requirements.
Fannie and Freddie are now part of the Government, and should set their underwriting rules and pricing adjustments not to maximize net revenue but to break-even over a long time horizon.
Kentucky Mortgage Loans
There Should Be No Maximum LTV on the HARP Program
Fannie and Freddie should scrap the LTV maximum in the HARP program, for which there is no rational reason, thereby also eliminating the need for appraisals on HARP loans.
Kentucky Mortgage Loans
Too Few Lenders Make 125% HARP Loans
Charley was turned down for a refinance under the HARP program, although his LTV was only 120%, which made him eligible under agency rules. Nonetheless, the lenders Charley approached would not make the loan. They told him that their maximum LTV was 105%, and some said that it was 95%. Charley could have refinanced if he knew where to go, but he didn’t and gave up the search.
Fannie and Freddie ought to do a better job of informing potential borrowers how to find a lender who will make 125% HARP loans, and they should review their policies that have discouraged broader lender participation.
Borrowers With LTVs Above 105% Who Have PMI Can Refinance Only With Their Current Servicer
Fannie and Freddie ought to inform potential HARP borrowers who have mortgage insurance and LTVs greater than 105% that they can only refinance with their current lender, and they should examine whether there is anything they can do to remove the PMI roadblock.
Kentucky Mortgage Loans
HARP Should Be Expanded to Cover Mortgages Not Owned by Fannie or Freddie
Treasury should have the agencies develop a HARP1 program covering loans they do not now own that would be subject to underwriting rules and price adjustments consistent with the Government breaking even.
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