Discount points is a fee you pay the lender to get a better rate. For instance the going rate may be 5.75% but the lender may offer you 5.5% and say its with 1 point, or 1% of the loan amount. Its completely up to you if you choose to pay points to get a better rate, or pay nothing and still get a good rate.

Some lenders when quoting VA interest rates won’t give you a choice, they simply want you to pay the points because doing do means more profit for them.

Our last post sparked an important thought that needs to be reiterated. Mortgage rates cannot be guaranteed until your complete application has been submitted. That is why the interest rate is only a quote. They can change daily so no one will guarantee a rate until its locked.

Many mortgage companies will take advantage of this by quoting you a rate lower than what it really is just to earn your business. Then when its time to lock, they give you the real rate and say sorry, the rates increased. Or, they may quote you an honest rate, but when its time to lock quote you a much higher rate because by then you feel trapped or obligated.

Solution – When you are ready to lock with your lender and he gives you the rate that he wants to lock, CALL another lender immediately, or better, CALL US! Ask for a rate quote and compare the two. Comparing rates really needs to be done at the same time to get a real comparison because remember, rates can change multiple times per day.

If your current lender is taking advantage of you, you will know if there is a big difference in the rates.

Here at MilitaryLink, we provide you with an honest quote every time. We are a veteran owned company, with many veterans loan officers, we don’t take advantage of our own!

When you are quoted a VA loan rate by us or another lender, you will be told that the rate could change. This is because rates really do change, sometimes multiple times per day. Rates are affected by the bond market and if the bond market moves it can cause lenders to adjust their mortgage rates during the day.

When you contact a lender and ask for a rate quote, it’s only a quote for that very moment. Unfortunately we can’t guarantee or lock the rate at that time. Before locking a rate we need a complete application and we need to determine you qualify for the loan. When a rate is locked it tells the lender or investor that we are going to use that money for a home purchase, so the money is set aside so no one else uses it. If loan officers were allowed to lock an interest rate for each client that asks, all the investor money would be set aside but rarely used. How many companies have you contacted to get a rate quote? Chances are your shopping so if you contacted five or ten, an investor would have 5 or ten times the requested loan amount set aside for one person. See what I mean?

That is why unfortunately rates cannot be locked simply because someone inquires about a rate quote.

Here at MilitaryLink LLC, we always look out for the veterans best interest. We provide you with an honest rate quote, and tell you up front that it could change. We get your application in as quickly as possible so that we are ready to lock, then, we will keep you informed about the rates so when YOU ARE ready to lock, we will lock the rate for you.

Many unethical lenders will use this to their advantage so when they earn your business, they increase your rate unnecessarily then tell you that the rate went up even if it didn’t.

When you apply with a company, and the day you get ready to lock and the loan officer tells you that the rate went up, before you lock, CALL US or another lender to get a second opinion. Calling someone else who thinks they may earn your business, will provide you with an honest and current rate lock. If it’s much lower than your current lender, chances are he’s taking advantage of you and you should find another lender.

We have seen allot of refinance applications since the interest rate drop in December. Most applicants are trying to refinance an already low interest rate into a teaser rate seen on advertisements all over the web. The truth is, VA interest rates are hovering between 5-5.5 %. Yesterday’s rates climbed to 5.75%. To refinance a loan into this range a home owner would have a rate of 7% or higher before the cost is worth the benefit. Typically on the average home price you will want to save 1.5% on a refinance and plan to stay in the home several years. However with most military homeowner moving after just 3-4 years, we often recommend against refinancing.

Is it time to refinance your VA Loan? It could be if your existing va interest rate is 6.25% or higher and you plan to keep your home. We will start the new year with some of the best VA rates ever. Reducing your interest rate by 1% or more can save you $100/month on a $200,000 loan. If your current mortgage is larger, the more you can save.

 Here are just some of the benefits:

• Reduced monthly payment
• Save thousands of dollars in interest over the life of the loan
• NO credit checks to qualify
• NO Income requirements
• NO Appraisal
• NO out of pocket costs (fees can be rolled into the new loan)
• Low 0.5% VA funding fee
• Very little paperwork
• Fast and Easy
• Convert to a low va Fixed rate from your adjustable rate

 Ask about the VA Streamline Refinance option with your loan officer. Or visit http://www.va-loans.com/refinance.html

Best VA rate of 2008

The markets have driven the VA Loan rate down to levels we have not seen in a long time. Starting in Early December the VA rate dropped below 6% and has continued to decline. Over the last two weeks we have seen 5% for a fixed rate va loan. Now today those rates have dropped again. We are seeing rates between 4.875% and 5%.

These rates should last into early January 2009, but there is never a guarantee. If your shopping for a home, apply and lock in the best va rate of the year!

What does it mean? When you see a va loan rate of 5% Fixed, it means when you lock your rate at 5% it will never go up. Unlike adjustable rates that we have seen go up, in some cases adding hundreds of dollars to a monthly mortgage payment. When you apply for a va loan, make sure your rate is fixed.

“0″ points means you don’t pay a fee to get the rate. Some lenders will quote a low internest rate, but tell you must must pay points (a fee) to buy down the rate. With todays very low fixed rates there is no need to buy the rate down.

If your looking for the best low va rates, apply with va-loans.com today.

A month ago we said that 6% was considered a good rate. However with the current market conditions we are now saying 5.25% is a great rate to lock. If you are buying a home in the next 60 days, I strongly recommend you lock in your rate. Currently we are seeing rates approach the 5.0% mark which is truly an incredible rate to have. The difference 1% makes on a $200,000 loan is $126 per month!

The loan officers working with va-loans.com work hard to find the best va rate from dozens of local and national lenders nationwide. Contact us today and let us find you the best va rate.

In the past two weeks we have seen the best va rates all year. What a great way to end 2008 and start 2009, with a low fixed va rate for your new home. There are thousands of military families preparing for purchasing a home in 2009 becuase home prices have dropped and rates are low.

Inquire now about our low va rate mortgages.

VA Rates are dropping today to levels we have not seen in a long time. The markets are reacting to the feds decision to lower rates to help people refinance out of high interest rate loans. If you considering buying a home soon, apply today and lockin this great low rate before rates go back up.

5.375% is 0 points / 30 year fixed.

This week va rates didn’t move much. Earlier in the week they were 6.12% but fell back to 5.875% and remained there. We continue to beet the competition with our rates and will continue to work hard building relationships with investors and lenders so that we can offer our clients the best deal possible.

Rates fell significantly yesterday on favorable bond market reaction to the elections. Rates are down to 5.875% from 6.50%. They could continue to slide today to 5.75%. If you’re not locked you need to be. If you lender has you locked at a higher rate, contact us today and let us lock you with a low va rate loan.

It’s a new week, VA interest rates are on the rise this week. It is unknown how long they will remain above 6%. If you’re looking to buy a home within the next 30-45 days, I recommend you apply now and float your rate. By floating your rate it allows us to rate shop for you and when rates drop back to the 6.0 – 5.875% level we can lock you in (with your approval). Rates will remain uncertain as long as the economic crises continues to unfold. Any VA Rate at 6% should be considered a good and safe rate to lock.

We end the week where we started. On Monday rates were 6% but got a little better by the end of the day. Tuesday morning they dropped to 5.75 and remained there through Wednesday. On Thursday the rates began to rise again and hit 5.875%. The turmoil in the markets and the economic fears cause the rates to rise further this morning back to 6%.

As economic fears continue and are likely to continue in coming months, we could easily see rates rise  and fall. However, despite this fluctuation, any va rate at 6% or below Is considered a good rate and buyers should not hesitate to lock it in.

If you’re shopping for the best VA rates, then there are a couple things you should know. First rates change daily and are based on what the bond market is doing. Each mortgage company or investor determines daily what their profit margin will be for offering money for home loans. Some want premium pricing, meaning they set interest rates higher than most. Others offer lower interest rates with less profit hoping to get more loans.

Here at va-loans.com we have over 120 lenders and investors that we watch daily to find you the best va loan interest rates. We have a price engine that allows us to shop for you and identify who is offering the best va rate at that moment in time. Because we watch the market conditions and also the rates we know a good rate when we see it.

Currently the best VA Rates will be 6% and below. In the past couple of weeks we have seen rates jump to 6.5% them fall back again hovering at 6% most of the time. So if you get a chance to lock a rate at 6%, 5.875, 5.75, or 5.625, I would highly recommend you lock it!

As noted on our home page, last week’s best rate was 5.875% while many companies were offering 6-6.25%. This week we have already seen 5.625% but that has since risen again.

Contact us for current rates, or apply and let us rate shop for you.

Over the last two weeks you have probably heard about the stock market going crazy! One day a 900 point loss the next it rebounds. Well mortgage interest rates do not follow the stock market but they are affected by the bond market. As money is put into and taken out of the stock market many people move it into and out of the bond market causing huge swings. Two weeks ago we saw va interest rates of 5.875%. This week we have seen them at 6.5%. A change of just .5 percent can affect your mortgage by $100 or more!

Rates are not expected to remain high, in fact as we learn more about the $700B economic rescue plan, the markets will settle down as well as the bond market allowing interest rates to come back to 6% or less.