Muscular dystrophy (MD) is a group of genetic diseases that weakens the body’s muscle fibers and gradually limits muscle movement.
For our small part in the fight against MD, we’re participating with the Muscular Dystrophy Association (MDA) in their premier fundraising program. The MDA “Lock-Up” is where business and community leaders agree to be put behind bars as incentive to get family, friends, and co-workers to contribute to their “bail”.
All of the funds raised by this “Lock-Up” will help the MDA in doing research and provide access to medical clinics and summer camps for individuals and families affected by neuromuscular disease.
You can join us by contributing today.
Believe it or not, someone is going to jail and we need your help to decide who!
Creekside Mortgage, Inc is trying to raise money to help children and adults with muscle disease in our community.
To raise money we are going to put either Pam Conrad or Jake Dold in jail. You get to decide! After the decision has been made, we will then try to raise bail to get them out. While it won’t be real jail, it will be a lot of fun and it will help out a lot of people.
Here’s the story:
On the outside Pam seems like your average law abiding citizen, but she has her secrets. You should be careful while walking outside in the rain.
Charges being brought against Pam:
Pam is being accused of seven counts of dancing in the rain when no one was looking, three counts of taking the last piece of candy from the front desk, and two counts of drinking the last of the milk and putting it back in the refrigerator.
Sure, he seems like an innocent young man, but watch your back. He may surprise you as you turn the corner.
Charges being brought against Jake:
Jake is being accused of 473 counts of jumping out and scaring people when they least expect it, three counts of leaving the lights on in the front room, and two counts of spiking the holiday punch with spicy sauce.
If you’re a first time home buyer, getting a mortgage can seem pretty daunting. That’s why we’re going to help out our veteran friends today, by giving a little background on the three main types of VA loans available. Each loan has a unique function or purpose, and choosing the right one for your needs is very important.
The first type of loan is usually the perfect loan for first time home buyers - it’s called a Purchase Loan. It is the basic VA loan for purchasing a home, and it can have huge advantages over purchasing a home through a conventional loan. The two main advantages this type of loan has, are highly competitive interest rates and that they are generally much easier to qualify for. This not only makes it a great option for first time home buyers, but for anyone who might not be able to qualify for a conventional loan due to issues like credit scores.
The second type of loan is a Cash-Out Refinance loan. This type of loan refinances your current loan (generally up to 90 percent of its value) and gives you cash for the value of your home equity. The unique feature about this loan is that the current loan you are trying to refinance does not need to be a VA loan. So you can have a conventional loan and refinance for a lower interest rate and get the value of your home equity in cash!
The third main type of VA home loan is called an Interest Rate Reduction Refinance Loan (IRRRL.) An IRRRL does not allow you to take out a loan above the balance of your current mortgage, so unlike the cash-out refinance, you won’t get any money back. However, there are two big benefits for this type of loan, it is used to lower your interest rate and it gives you the ability to switch from an adjustable, to a fixed rate mortgage. This makes it the perfect option for a veteran using a VA loan, who wants a reduced monthly payment and/or interest rate.
Each of these loans have different advantages and qualifications. Hopefully you understand the different advantages now. If you want to learn more about the different qualifications, give us a call today. Our experts are happy to help anyone with questions.
Foreclosure is scary and most people don’t like talking about, but in the VA loan industry, it’s something to cheer about.
VA home loans have always performed well, and there are some new numbers from the end of 2012 that get VA lenders really excited. Last quarter the VA foreclosure rate was only 2.08 percent. This number is incredible when you compare it to the subprime loans foreclosure rate of 9.28 percent and when you realize that 9 in 10 VA buyers put $0 down.
So why are these VA loans outperforming conventional loans in such an extreme way? There are a few key factors, but we want to focus on just one today. Residual Income a.k.a the Silver Bullet.
Residual income is the VA’s unique approach to measuring a buyers ability to afford a monthly payment. It’s what you have left over each month after you pay your normal revolving installments ( i.e. mortgage, car payment, etc.)
The residual income of a family that has a monthly income of $3000, a mortgage payment of $1200, and a car payment of $250, is $1550 (3000-1200-250=1550.)
Conventional loans use credit scores and debt-to-income ratios to help determine the eligibility of a potential buyer. Even though these are two great tools for measuring, residual income takes it a step farther, leading to that low 2.08 percent foreclosure rate.
VA loans look at credit scores, debt-to-income ratios, and residual income to determine a buyers eligibility for a loan. All three play an important part in the decision making process. The combination of the three is what makes VA home loans so successful. That’s why we recommend looking into a VA home loan today.
There’s a lot of advice out there for ways to manage your debt. One of the most common pieces of advice is that if you have extra money, pay it towards the balance of your biggest loan. But is this true anymore?
In the world of finance, your money goal should be to earn more than inflation. Let me explain with an example.
Let’s say you put $1000 under your mattress on January 1, 2011. On January 1, 2013 the original value of $1000 decreased to $954.19. That’s right, Mr. Inflation snuck into your room during the night and stole over $45 from you!
So now let’s say you have an extra $500 each month that you want to pay towards your mortgage. You could do that, and not save yourself any more than the rate of inflation (because it’s the same as your VA interest rate.) Or you could listen to my advice and invest it. It is generally accepted that even the worst financial advisor should be able to get you at least 5% return.
Right now VA loans are closing with interest rates that are floating around the standard rate of inflation. Put simply, you can easily earn more money investing than you would save if you paid extra money towards a low interest VA loan.
On a side note, the expert advice of paying off your loans quickly is still valid for your higher interest loans, especially from consumer debt like credit cards.
First let’s discuss what a cash-out refinance is. To do this we’ll look at a simplified example.
Let’s say you have a mortgage on a home with a current market value of $300,000. You paid $270,000 five years ago and have paid $20,000 toward the balance of the loan. That means you have a $50,000 equity in your home.
So you decide you want to do a VA cash-out refinance. This means you would take out a new loan for the current market value of the home ($300,000) and get the equity of the home (minus closing costs) back. You can use this money for anything from a remodel to paying off consumer debt.
Now that you know what a VA cash-out refinance is, let’s answer the question of whether or not it’s a good idea.
There are two big reasons to do a VA cash-out refinance. The first is that VA loan interest rates are currently hanging around the standard rate of inflation (that’s really low!) These low interest rates can save you a lot of money in the long run. The other amazing thing about these loans is that they are assumable. You can learn more about assumability by clicking here, but the basic idea is that a future buyer can take on your low interest rate loan. This can be a huge selling point if interest rates jump up to 8 percent!
So let’s say you have some other debts and bills, and you have a little equity in your home. Now that you know what a cash-out refinance is, and why it’s such a good idea, wouldn’t you agree that it’s the perfect time for you to look into a VA cash-out refinance?
Creekside Mortgage, Inc is here to help. Give us a call today at 800.920.5420.
We often get asked why VA loan interest rates are so much lower than conventional interest rates.
The bottom line is that VA loans are insured up to 25%. This means that banks have the assurance that at least 25% of the loan will be repaid?allowing them to lower their interest rates. This sense of security allows for less restrictive lending requirements.
While VA loans have remained fairly simple, conventional loans appear to be getting more and more complicated. When the mortgage industry went through the recent downturn in the economy, conventional loans saw more and more restrictions while VA loans stayed mainly the same.
Now really is one of the best times to do a VA Streamline. Creekside Mortgage, Inc highly recommends looking into taking advantage of the low VA loan interest rates.
Creekside Mortgage, Inc is the Northwest’s #1 home loan expert, and can help you with your VA loan today. Call us at 800.920.5420.
You've all heard about the current low interest rates and how refinancing sounds like a good idea right now. So when is the right time to do a VA Streamline or an IRRRL?
Though a low interest rate is important, don't get too caught up with the size of the interest rate. It is important to realize that no matter how attractive the interest rate is, there are other aspects to keep in mind. If you focus on all three while considering your financing options, you will save yourself a lot of time and money.
While the interest rate is important, something more important to focus on is the question, "How much will this cost me?" You must consider what doing a refinance will cost you today.
Once you know how much your new loan will cost you today, you can figure out how long it will take you to save that amount of money over the life of the loan. Using the savings and dividing it by the total cost, you can find a very valuable number called the "recoup period."
You never want to do any refinancing unless the recoup period is less than 24 months or two years.
Keeping all of these important financing aspects in mind will help you make sure your refinance is a truly beneficial decision.
Creekside Mortgage, Inc is ready to help you refinance your VA loan today. 800.920.5420
Something amazing is happening. With today's economy, doing a VA Streamline costs you virtually nothing. That may mean that you could refinance with little to no out-of-pocket cost.
One of the ways that IRRRLS can benefit you is by making it possible to skip an entire house payment. Also, you close your existing escrow account, allowing you to get a refund of built-up insurance and taxes. Plus, banks pay almost all of the costs associated with the loan.
Let's take a look at a real example. We just closed a loan where the individual had a loan balance of $390,550. The new loan balance was $391,324 with an interest rate of 3.25% and a 3.276% APR. After skipping one month's house payment and receiving his returned tax and insurance from escrow, the client could theoretically apply these funds to his new balance and owe less than he did at the beginning.
Some mortgage companies try to sell you on lower interest rates, knowing that a lower rate is appealing to consumers. But, as you will see in our next post, interest rates are not the only aspects of financing to consider.
Creekside Mortgage, Inc has the skill and know-how to help you save money today. Give us a call 800.920.5420.
Kerry Greenwald, the owner of Creekside Mortgage, Inc., is not only the owner of a mortgage company, but a homeowner, as well. And, it should be no surprise that he's got a VA home loan!
Over the recent months, Kerry has received multiple offers in the mail that offer him a lower interest rate in hopes of gaining his business in doing a "Streamline" or "IRRRL (Interest Rate Reduction Refinance Loan)."
Kerry has received cards that boast rates such as 2.75%, a rate that seems quite low. Each time that Kerry gets these ads in his mailbox, he immediately researches the ad and the offer being presented to find out just how they are able to advertise such a low rate.
According to Kerry, the majority of offers that he gets are actually loans with an ARM (Adjustable Rate Mortgage) structure, meaning that while you may start with a super-low interest rate, that rate will adjust in the years after.
With rates already low, why take a chance that your rate will surprise today's rate for a 30 year, fixed-rate mortgage, in order to save in the short term? Plus, by choosing an ARM, you lose the perk of your VA home loan assumability option.
Before making any decisions about refinancing your home, please do your research. If you'd like someone to help you go through your options, give us a call!
Creekside Mortgage, Inc. 360.571.5626