It’s a long and winding road we travel to get to this new year. Many are saying adios, good-bye, sayonara and finally, get lost 2020. But there’s another and much brighter side to the year just passed.
First among the bright spots of 2020 is the medical technological miracle resulting in the development of a vaccine against Covid 19. Think about this: historically the optimistic predictions on creating anti-viral vaccines say it would take years. The vaccines now becoming available to tame this Covid pandemic took just months. That’s life affirming!
Secondly, and a major focus of our attention, is what has happened to V.A. mortgage rates. At VALoansMN we were offering record breaking loan rates in the upper 3 per cent range at the beginning of 2020. Today, thanks to an accommodating Federal Reserve which apparently is willing to keep the money presses churning, rates are a full percentage point below what they were just one year ago. This is economically reaffirming which allows us to maintain, perhaps even raise, our standards of living.
Given these two developments does 2020 seem all that bad? We at VALoansMN think not. Sure, that long and winding road through the past year had some pot holes. That’s true especially for our veteran brothers and sisters who were not fortunate enough to see their paychecks still coming despite government’s economic shutdowns. Those of us able to maintain our jobs during the hit and miss lockdowns should be most grateful and, at the same time, we suggest, should be most helpful to those who have suffered. We are among those with a deep sense of gratitude.
The road we travel now leads us to the new year. We look forward to continuing our service to those who have served and those serving today in our armed forces. We begin our year together with this Irish prayer:
May the road rise up to meet you.
May the wind be always at your back.
May the sun shine warm upon your face;
the rains fall soft upon your fields and until we meet again,
may God hold you in the palm of His hand
Here’s the choice: you have money stuck away in a mutual fund that’s been appreciating at about 7% a year. A veteran can borrow money to buy (or refinance) a home for under 3%. What’s a better choice, taking money out of your mutual fund or using OPM (Other People’s Money) for a home purchase? If you answered OPM then you get a gold star from most financial planners.
The Federal Reserve is indicating they see no change in low interest rates in the foreseeable future. This is very, very good news for our V.A. loan home buyers. In the not too distant past we were urging veterans to take advantage of low V.A. loan rates because they were sure to rise. We no longer take that position. Now we urge veterans to shop for a home wisely taking your time to find the right house. We believe you are not about to see any dramatic increase in V.A. home loan rates anytime soon. \
As you begin your search start with us at VALoansMN/Leader One. Every home shopper should be armed with a pre-qualification letter. This letter puts you in a very strong position when your offer to buy is put to sellers. Even more than that, it puts you in a strong position as you select a real estate agent. Any agent is more likely to work with a home shopper who comes armed with a pre-qualification letter from VALoansMN. What does it take to have this letter? Only a phone call and a short conversation.
When you call us (612-240-9922) we will ask about your current financial situation; do you have any savings, a checking account, a steady job or are you self employed. We ask about any outstanding loans such as a car loan or credit cards. We will ask for your current address and social security number. Then we put all the available information into our system and run a credit report. Do not be afraid of this! VA loan requirements are not as stringent as you may think.
It is possible to get a VA loan even with what you may consider bad credit. First, a reminder. The V.A. is not the lender. The V.A. only guarantees or backs up your loan from a bank or other financial institution. Our lenders look beyond a credit score. They want to see your loan or credit card payment history. Do you make payments on time? They want to see how long you’ve been employed. If you’re self employed they want to know how long you’ve been in business. Do you have any bankruptcies or foreclosures in your past. Not to worry. Our job is to put together your loan “package” and present it in the best light to lenders.
Our goal is find you the best loan possible. We want to make sure you get the best interest rate at the lowest cost. This is our responsibility to you. We also want to ensure you have a V.A. loan you can afford. This why so many Minnesota, Dakota and Wisconsin veterans turn to VALoansMN. We have the experience and knowledge to get it done right. Let us get it done for you today. Pick up the phone and call Brad. There’s never been a better time to take advantage of this great benefit you earned when you served us all in uniform. Now let us serve you.
VA mortgage rates in the upper midwest are on the move. The rates we find for our clients have increased, then decreased, then increased again.
One of the first questions you may have when coming to us for your Minnesota or North Dakota VA mortgage loan is “what’s the rate?”. This is a question that takes some investigation to answer. So let’s take a look at where we stand this month.
There are so many factors influencing the rate you will get on your VA loan but let’s start where you have little control, the bond market. If you want to see what’s happening to mortgage rates the best indicator is the ten year U.S. Treasury Bill. In recent weeks we’ve seen a slight uptick in the yield. Likewise we’ve seen some increase in mortgage rates. No sooner had we watched this than some depressing economic news came out pushing the rate downward. At the end of the month of May the ten year treasury bill closed at it’s lowest rate in 4 weeks. But this is just one piece of a very complex puzzle. Your mortgage rate will depend also on things you do control: credit score, credit history, amount of credit, length of credit, amount of income, money in the bank. All of these impact the VA loan rate available to you.
If you have a very high credit score, say in the upper 700’s, you’re going to have the best rates available. If your score is in the 600’s your rate will be somewhat higher because this indicates to lenders you may have had some trouble managing money. If you have a lot of credit card debt, car loan debt, student loan debt this may impact the rate you can get. If, on the other hand, you have hardly any debt and a good income you’re going to do better.
We wish we could answer the question about mortgage rates on our first contact but it’s impossible to do so without knowing your credit history. We can give you a general idea. For instance, we can tell you that mortgage rates as of this writing are generally (very generally) speaking in the low 4% range. In a few days they could be in the 3’s or maybe inched up into the high 4’s. Rates change weekly, daily, even hourly. We can also tell you that historically speaking rates are extemely low. Many forcasters expect that to change and not for the better.
There’s a line in a movie we recently saw that may capture where we stand today. “A short time from now this will seem like a long time ago”. If you are ready to buy a home or refinance your existing mortgage using your great VA benefits don’t let the grass grow under your feet. Call us at VALoansMN and let’s get to work so you can tell people a short time from now how rates were so low a long time ago!