Funding Fees were reduced effective October 1, 2011 due to the Restoring GI Bill Fairness Act of 2011, but this lower schedule was only effective through November 21^st.

The VA Funding Fee is charged on a mortgage at closing in lieu of up-front mortgage insurance on VA loans and is often added into a borrower’s loan amount or paid by the seller in a purchase transaction.

The following is a breakdown of the new VA Funding Fee schedule:

First Time Use:

• Less than 5% down – 2.15% for Veterans, 2.40% for Reservist/National Guard
• 5-10% down payment – 1.50% for Veterans, 1.75% for Reservists/National Guard
• 10% + down payment – 1.25% for Veterans, 1.50% for Reservists/National Guard

Subsequent Use:

• Less than 5% down – 3.30% for Veterans, 3.30% for Reservists/National Guard
• 5-10% down payment – 1.50% for Veterans, 1.75% for Reservists/National Guard
• 10% + down payment – 1.25% for Veterans, 1.50% for Reservists/National Guard

Interest Rate Reduction Refinance Loans (IRRRL) remain with a Funding Fee of .50%

VA loans remain one of the most attractive mortgage financing programs available in the U.S. today with no minimum down payment requirement and flexible qualifying criteria. Getting pre-qualified for a VA loan is simple as a lender only requires a copy of the Veteran’s DD-214 or a valid Certificate of Eligibility and some basic personal information.

VA loans are one of the last true remaining “no money down” mortgage loan programs in the marketplace and this reduction in the Funding Fee should provide a significant money saving benefit to returning service members. It should also motivate many Veterans who have been on the sidelines as mortgage rates have hit new record lows to move forward with home purchase plans, especially since home affordability is at a record high.

When seeking a VA Loan, it is important to work with a home mortgage lender who has a strong working knowledge of VA loans as this can streamline the loan process significantly.

Average rates for the benchmark 30-year fixed mortgage as reported by Freddie Mac stood at 4.52% this week. This represents a change of +.01% over last week’s average.

The average for the 15-year fixed amortization equaled 3.66%, also increasing .01% on the week. Both averages are within .02% of 2011 weekly lows.

Mortgage backed security prices have rebounded this week as fixed rate investors worldwide are favoring US Treasuries over Euro back offerings. Economic chaos across Europe appears to be influencing bond traders more than the potential for American debt default looming August 2nd if a political compromise is not reached.

Today, Home Loan Specialists is posting par rates of 4.25% on 30-year fixed conventional and FHA loan programs. 15-year conventional rates are listed at 3.5% with 10 year rates available as low as 3.25%.

Help the Astros and Gallery Furniture honor our great community of retired military for their valor, excellence and timeless service. Thank a veteran for their service by nominating them for Operation Veteran Appreciation.

For every Astros home game starting July 15, one veteran will be selected to receive two Astros tickets, each loaded with $15 that can be spent at the ballpark. Their tickets won’t be for just any seats, but specially designed patriotic seats that will let all fans know that the individuals sitting in them have served their country.

Please click here to be directed to the website for more information and to complete the nomination form.

The two evils are: the impending US budget crisis which, if the debt ceiling isn’t increased by August 2^nd, will threaten to cause the government to default on credit obligations; and the rapid deterioration of several fragile European economies including Greece, Spain, Italy, and Ireland.

Fixed-income investors are choosing to favor dollar-based securities over those backed by the Euro.  As demand for (US Treasuries et al) has risen, bond prices have increased, thereby pushing rates back down below rolling 12-month averages.

• 30-year fixed mortgages (at par) can be locked in the 4.25% to 4.5% range
• 15-year programs are available at 3.5%
• 10-year amortizations as low as 3.25%
• Even more attractive are 3 year ARMs in the mid 2s
• Investors can also reap these benefits with rates that are only .5% to .75% higher than the par rates stated above available on primary residences.
• Jumbo loans (>$417,000) are also at bargain basement levels with 30-year fixed terms in the low 5%s and 15-year at 4.25% to 4.5%.

Once an agreement on the US budget is reached, all bets will be off.  If the highly contested debate ends with a compromise that leaves any lingering scent of possible inflationary pressure, bond prices will likely fall and rate increases will likely be dramatic and instantaneous.

July 8, 2011

The only relevant news came with this morning’s deeply disturbing unemployment report. It had been forecasted that unemployment would remain unchanged at 9.1%. However, the report illustrated an actual increase to 9.2%, a clear signal that more and more Americans are losing their jobs.

Rates on VA loans remain very attractive – as low as 4.5%.  For more information, check out our Texas VA Mortgage Rates here.

Home Loan Specialists is posting par rates of 4.375% on 30-year fixed conventional and 4.25% on FHA loan programs. 15-year conventional rates are listed at 3.625% with 10-year rates available as low as 3.25%. Rates appear headed to lower levels as a result of the jobs data.

Our recommendation is to lock into fixed rates during the coming week. For buyers who have been pre-approved, this is a golden opportunity to secure great long-term fixed-rate programs.

This week the European Union and the International Monetary Fund announced an agreement to keep the Greek economy from collapsing with a 5-year austerity plan. This has had a calming effect on the mortgage-backed security markets, which are now poised to react to the impending US debt crisis.

Home Loan Specialists is posting par rates of 4.25% on 30-year fixed conventional and FHA loan programs. 15-year conventional rates are listed at 3.5% with 10-year rates available as low as 3.25%. None of these posted (par) rates have changed over the past week.

According to the Texas Veterans Land Board, current rates on a 30-year fixed rate purchase loan stand at 4.25%. VA loans are particularly appealing to Texas Veterans because they can purchase home at substantial discounts due to the weak housing market and afford even more home due to the low rates available.  Commonly, these loans require no down payment and many closing costs can be funded through seller contributions. Additional information can be found by visiting http://www.mytexasvaloans.com.

Reverse mortgage applicants were stunned this week as Wells Fargo and Bank of America announced plans to discontinue originations of these Home Equity Conversion Mortgages. This leaves MetLife as America’s largest participant in this market. Home Loan Specialists originates HECM products for Texas seniors over 62 years old that hold a minimum of 50% equity in their homes.   Contact Rick at 832-286-1591 or at Rick@HLSTX.com if you have any questions, or if you are interested in a reverse mortgage consultation.

Average rates for the benchmark 30-year fixed mortgage, as reported by Freddie Mac, stood at 4.50% this week. This represents a change of +.01% over last week’s average which reached a new low for 2011.

The average for the 15-year fixed amortization equaled 3.67%, down .01% on the week. The 15-year average represents yet another new low for 2011.

Mortgage-backed security prices remain strong in contrast to the extreme volatility noted in the equity markets this week. This is largely a result of European economic instability particularly with respect to Greece.

Today, Home Loan Specialists is posting par rates of 4.25% on 30-year fixed conventional and FHA loan programs. 15-year conventional rates are listed at 3.5% with 10-year rates available as low as 3.25%. These rates do not include origination fees.

Now is an especially attractive time for active military and Veterans to take advantage of VA-guaranteed home loans and Texas Vet Home Loans. According to the Texas Veterans Land Board, current rates on a 30-year fixed rate purchase loan stand at 4.26%. These loans are particularly attractive for Texas Veterans because in most cases they require no down payment and many closing costs can be funded through seller contributions. Vets can purchase home at substantial discounts due to the weak housing market and afford even more home due to the low rates available. Additional information can be found by visiting http://www.mytexasvaloans.com.

Texas Vets who are 30% or more disabled with a compensable, service-related disability as verified by the VA, are entitled to a half percent discount off of already discounted rates. Current rates are available by visiting www.mytexasvaloans.com.  The maximum loan amount is $325,000.

The Veterans Administration also offers a specially adapted housing grant program for Veterans who have a service-related disability. An eligible Veteran may receive a grant of no more than 50% of the cost of a specially adapted housing unit up to a maximum of $50,000.  These Veterans are also entitled to a waiver of the VA Funding Fee which can amount to a savings of up to 3.3% of their loan amount, or up to $6,600 on a $200,000 loan for a subsequent user of VA loan guaranty benefits.

As with other Texas Vets, disabled Veterans can utilize VA home loan benefits as long as they were not dishonorably discharged. VA loans allow “no down payment” mortgage financing and reduced out of pocket closing costs through allowable seller contributions not permitted with conventional mortgage loans.  These loans are among the only one that can be structured to allow a Vet to purchase a home with virtually no money having to be brought to closing.

For more information on this program or if you have any questions regarding a Texas VA Loan, please contact Mike Lesmeister at Home Loan Specialists at (832) 286-1601.