If youâre thinking of getting a VA home loan, youâve got to read this. The coronavirus pandemic has caused home sales to soar despite the increase in home sales prices in some parts of the country. And we see the impacts on VA mortgage financing, too. Hereâs why: Interest rates are at historic lows... Banks are changing procedures⦠Lenders are busier than ever⦠Added together, it makes a difference in how you apply for and secure a VA mortgage. Here at the Wendy Thompson Lending Team, we love to help our veterans. After all, who better deserves to achieve the American dream than someone who served our country? For more about how COVID-19 has affected your chances to get a VA mortgage, keep reading.
Interest Rates have Fallen
COVID-19 disrupted a wide range of industries in 2020, including banking and mortgages. As a result, interest rates started falling in the early months of 2020. Why did COVID-19 cause rates to fall? Great question. It started when the Federal Reserve lowered the target range of interest rates for federal funds to 0%-0.25% in March 2020 in an effort to stabilize the economy. Now, to clarify, the Federal Reserve doesnât set mortgage rates. But⦠The rate they set can have a huge impact on borrowing costs, which is why interest rates fell so quickly. Just how much did they drop? The average interest rate for a 30-year fixed-rate mortgage was 3.95% over the decade from December 2010 to November 2020, according to Federal Reserve Economic Data.But in December 2020, the average rate fell to 2.71% - a difference of nearly 1.25%! The drop from 3.95% to 2.71% can mean even bigger savings for VA mortgages. That can translate into thousands of dollars saved in interest over the life of a mortgage. On a $220,000 house, thatâs nearly $55,000 in borrowing costs that you donât have to pay for your 30-year mortgage!Mortgages are Harder to Get
Buying a home is rarely stress-free. Thereâs always another form or document or inspection that needs your attention. The right lender - one that knows VA home loans inside and out - can make becoming a homeowner easier... â¦but COVID-19 has caused a few roadblocks. Thanks to the pandemic, there are new factors standing between you and your VA home loan: Minimum Borrowing StandardsSome lenders changed their borrowing standards, making it harder to qualify. For instance, many lenders now require a 640 minimum credit score for a VA home loan.
Influx of VA Loan Applications
With falling interest rates, more and more people are pursuing the path to homeownership. Small Home Loans are Disappearing
The Pew Charitable Trust identified another potential roadblock: the number of mortgages for amounts below $150,000 fell between 2009 and 2018: But hereâs the thing: Discount Points are on SaleOne of the biggest expenses you pay with a mortgage is in the form of interest. Higher interest rates mean higher monthly payments and more money out of your pocket. sample VA loan Rates by Credit score: 600 to 620
*Updated 10/15/19 - Rates are based on a $250,000 loan with a 20% down payment. Rates change often and differ based on your state, down payment, and loan amount. Keep in mind that rates constantly change so it is best to contact us directly for the correct rate. What If You Want a VA Refinance Loan?Rock-bottom interest rates can make refinancing an attractive option. But refinancing got more expensive thanks to the pandemic. VA Mortgages and COVID-19: Your Next StepsThe pandemic has made some waves when it comes to getting a VA mortgage. But donât let those obstacles get in the way of your dream home. You can still buy a house with a VA home loan during the pandemic. And weâre here to help. The Wendy Thompson Lending Team is a top-ranked VA Loan and Mortgage specialist, and we work with active military, veterans and eligible family members to help secure a VA loan in all 50 states. Deciding on the right VA lender is the most important decision you will make. Choosing the wrong lender can result in you losing your dream home or costing you hundreds of thousands of dollars in more interest over the life of your mortgage. Donât make that mistake, contact the Wendy Thompson Lending Team today! You can start the process by clicking the yellow 'See if I'm Eligible' button on the right side bar under the 'Start your quote for a Home Loan' or call Wendyâs Team directly at (901) 250-2294, to get started on living the American Dream in the home of your Dreams! Via https://thewendythompsonteam.com/how-has-covid-19-affected-va-mortgage-financing/
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About UsWe want you to understand your options and pick the right VA Loan, because what you qualify for and what you’re comfortable with are 2 different things! You can start the VA mortgage process online with our pre-qualification tool, or call us. A 15-minute phone call will answer a lot of your IRRRL questions and set you on the right path. ArchivesNo Archives Categories |