According to VA Circular 26-11-12, "For loans closed on or after October 1, 2011, the fee for subsequent use loans with less than 5 percent downpayment and subsequent use regular refinance loans will be 2.8 percent for both active duty servicemembers, veterans, and persons qualifying based solely on service in the Reserves or National Guard."
These changes are due to the passing of the Restoring GI Bill Fairness Act of 2011, but other VA loan funding fee changes are also happening at the same time. VA loan funding fees for subsequent use VA loans were already "set to change based on previous legislation."
With the changes in VA loan funding fees, some veterans may wonder if there are alterations to the exemption requirements as well. VA loan applicants are exempt from having to pay VA loan funding fees under the following circumstances:
At the time of this writing there has been no change to the VA loan requirements for funding fee exemption–the VA requirements are exactly the same under the new funding fee structure as it is under the old one–borrowers must have VA-recognized disabilities established on their records. The procedures remain exactly the same before and after October 1, 2011 when the new VA loan funding fee structure takes effect.
If a borrower is under review for disability compensation but a final determination has not been made at the time the VA loan is issued, the borrower may be required to pay the funding fee and apply for a refund once his or her disability status is official.
Pending home sales are up 14.4 percent from a year earlier, reveals a recent report from the National Association of Realtors (NAR). Other indicators also suggest that real estate markets are gradually normalizing. Home prices went up by 3.6 percent in the second quarter of 2011 from the first three months of the year, adds the S&P/Case-Shiller Home Price Indices. However, some of that strength was due to seasonal home purchase trends.
House values are starting to reflect regional economic trends, rather than moving as "a national housing market where everything rose and fell together," adds S&P Indices. A good sign for real estate sales and property values in a community is when local companies are adding workers. Almost 70 percent of Americans agree that now is a good time to buy a home, states Fannie Mae's August National Housing Survey.
Low returns on stocks, bonds, and savings accounts are making paying off your home loan financially attractive. Many homeowners are getting a better return on their funds by reducing what they owe, rather than placing that money in an investment vehicle. You can benefit from this approach by refinancing now into a shorter-term mortgage. These loans offer lower rates than you'll find on a 30-year loan, providing even more savings.
Cutting your loan's term may allow you to pay off your mortgage before retirement. And that means you'll have more funds available to spend as you want. Paying off your home loan faster reduces your total interest payments, as well. If you plan on staying in your house for years, your savings could be tens of thousands of dollars. Ask us to show you how this strategy will work in your financial situation.
Persons who expect to live in their residence for several years also will save every month by paying points when obtaining their home loan. When an owner stays in their home at least four years it often makes sense to pay points.A point is equal to one percent of your loan amount. Paying points when you finalize your loan permanently reduces your borrowing rate – and your monthly payments.
Mortgage rates recently reached their lowest level since 1971, says mortgage investment firm Freddie Mac. Records weren't kept on rates before that time. Experiencing the lowest rates in a generation shows that now is a great time to consider buying a home or refinancing your existing mortgage. Even if you looked into making a real estate decision earlier this year and decided not to act, today's conditions are more compelling.
Tighter standards are making it harder for some borrowers to get the home loan they want, however. But we have the professional background and tools to help you obtain every possible advantage in today's challenging marketplace. Contact us right away to discuss your housing goals and review your current situation. We'll work with you to provide financing that meets your long-term needs. We'll go over your questions and concerns, and we'll show you positive options to consider. Before you know it, you'll be in a new home situation which provides more of what your household wants.
Four out of five Americans believe their family finances will either stay the same or improve in the coming year, reports the McClatchy-Marist Poll. Just one in five adults expect their financial situation to worsen – down from 25 percent who held a negative view earlier this year, the pollsters add. Everyone's money picture is unique, however. Our job is to help you reach your housing goals in a way that also enhances your family's financial well-being. To do this we'll find out how long you plan on living in your house, and how your income and expenses will change over that time. We'll also review your credit report together, to find ways of boosting your score. You'll then be on your way to obtaining a loan on the best possible terms.
Purchasers are taking advantage of great real estate deals now. Many first-time buyers are discovering they can have a place of their own at about the same cost as renting. And rental costs are going up in most neighborhoods. A recent national survey shows that just six percent of adults expect rents will drop over the coming year. Together we can map your path to homeownership. Call us soon to schedule a no-obligation meeting to review your housing needs.
Rates on all mortgages fell in late summer, as investors rushed to purchase U.S. Treasury bonds. Heavier demand causes bond yields to drop, and that passes on to savings for mortgage borrowers. Recently rates reached their all-time recorded lows. Owners who refinance are obtaining substantial savings as a result. Count on us to explain how our current market can work in your favor. We'll answer all your mortgage questions, and go over positive options with you.
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