Daily Mortgage Rates LIVE - 09/20/2024 - VA Loans

Welcome to Daily Mortgage Rates LIVE! In today’s episode, we’re focusing on VA loans—a powerful home financing option available to veterans, active duty service members, and their families. If you’ve served in the military or are currently serving, this episode is a must-listen.

We’ll delve into the unique advantages of VA loans, including the benefits of no down payment, competitive interest rates, and no private mortgage insurance (PMI) requirements. Learn how VA loans can make homeownership more attainable and affordable for those who have served our country.

Our expert guests will walk you through the eligibility requirements, the application process, and the latest updates that could impact your loan options. Whether you’re looking to buy your first home, refinance an existing mortgage, or make improvements to your current home, this episode will provide valuable insights and practical tips.

Tune in to Daily Mortgage Rates LIVE! and find out how VA loans can help you achieve your homeownership goals with the support and benefits you’ve earned through your service.

For more episodes visit: https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

About The Mortgage Calculator:

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! 

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of over 350 lice

Catch all the episodes of Daily Mortgage Rates LIVE at https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

Check out all episodes of Daily Mortgage Rates LIVE at https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! Non QM Loans include Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!

To apply for a mortgage please visit our Quick Mortgage Quote Page at https://themortgagecalculator.com/Mortgage/QuickQuote

The Mortgage Calculator is a registered DBA of Mortgage Calculator Company LLC. NMLS ID #2377459. Programs and rates are subject to change without notice. Mortgage Calculator Company LLC is licensed in the following states that require specific licensing disclosures: AZ (#1040352), CA CFL (60DBO-171188), GA Georgia Residential Mortgage Licensee (#2377459), IL MB.6761755 Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601 1-888-473-4858. Not licensed or conducting business in New York.

For more info visit https://themortgagecalculator.com...

Transcript

Restream recording Sep 20, 2024 • 03:05:01 PM: 0:09

So welcome everyone. My name is Kyle Hiersche. I am the COO of The Mortgage Calculator joined here by our president Nick Hiersche and our CSO Jose Gonzalez. We are a lender that specializes in non QM loans and what we do every weekday at 11 a. m Eastern on this show is go through our actual live mortgage rates and then we do a deep dive into a different loan type. Today's loan type is going to be VA loans. So I'll see you all. Get into that here shortly. But first, we'll go through the live rates. So Nick, if you're ready, let's go ahead and pull up today's rates and see what they are looking like after, uh, the news this week. Uh, so a lot of news, but not much change in the rates. Uh, still pretty much the same. Uh, we'll check out all the rates for today. It is September 20th, just after 11 a. m. Eastern. So all the standard rate sheets are live here for the standard programs. If you'd like a full breakdown and itemized loan estimate, it goes through all the fees that go into the APR. Please get with one of our team members. They'd be happy to send that over. We will do a comparison today of a standard scenario. We'll set up a single family home. We'll set up 500, 000 purchase, 400, 000 loan amount that corresponds to 80 percent loan, 20 percent down payment. We'll use an estimated credit score of 760 and an estimated debt to income ratio of 40 percent as we do every day. So let me share my screen. And we'll get through the rates today. So again, about the same as it was yesterday. Our first option here, most popular option, 30 year fixed conventional for a primary home. Most common option people think of when they think of a mortgage. Rates as low as 5. 625 today. Final APR 5. 915. And if for any reason our customer doesn't qualify for a standard conventional option, typically the next option we want to quote is an FHA option. FHA allows more leniency on credit issues and a higher debt to income ratio overall. For However, it does require a front end yearly mortgage insurance. FHA coming in today, 4. 75. Final APR, 5. 688. So if our customer qualifies for both, they may consider FHA if they're willing to do the mortgage insurance and our customers that need to use it. Definitely a great option. Very comparable to conventional. And our VA options are next for eligible vets and active service members. If you are eligible, these programs are amazing. Great. Since it was 4. 99, final APR with the standard funding to be here, 5. 275. So notice when we compare APR, VA is going to be the best option, uh, better than FHA or conventional for eligible vets. Definitely a great option. And moving on to our final standard option, USDA. USDA is only for properties in USDA eligible areas. That's the rural areas of the country. The property's eligible and the borrower's eligible. These are great options to consider. USDA comes in at 4. 875 today. Final APR, 5. 598 with all the fees included. So it's a touch cheaper than FHA if our customers, um, comparing them both side by side and also touch cheaper than conventional here. So great option for those rural areas. And that rounds out the standard options that every banker lender has. And if our customer doesn't qualify, unfortunately many banks have to deny them, but we have 5, 000 other options starting with our non QM fault dock option for a primary home. And that's going to be for our customers that for any reason, don't qualify for conventional need to use alternative docks. We can switch to this program, use bank statements, 1099s, asset related, P& Ls, all kinds of different options. Rates today coming in at 6 percent for a bank statement option, finally PR 6. 309. So we're within a half a point, a little bit less than half a point here with switching between conventional and switching to alternative docs. So a great option for our borrowers that need to use it. And we can also use all docs for investment properties along with tons of other options So first up is the alt doc coming in today 6. 375 rate where bank statement or similar final apr 6. 694 For an investment property and we'll compare that to The other options so there's no government options for investments So no usda fha or va, but we do have conventional rates as low as 6. 125 today final apr 6. 452 So that's a little better than our all doc options, which is typical. And, uh, for the first time in a little while, a little better than our DSCR favorite option. So our DSCR stands for debt service, cover ratio, no employment needed, no income information needed from our borrowers. We just use the estimated rents from the appraisal to determine a DSCR ratio. The estimated rents cover the estimated expenses, AKA the property will cashflow monthly. That's a ratio of one or higher. For this demo, we use a ratio of 1.5, and the most common option is a three year prepayment penalty. So this is the most common version rates as as 6.25 today, file a PR 6.541. Just a touch higher than conventional, but still most investors prefer DSCR. And we can sweeten the deal with a five year prepayment penalty on some of our programs coming in today at 5.875 final a PR 6.193, which actually beats conventional, which is amazing. And we do have a no prepayment penalty option. So rates as low as 6. 375 with no prepayment penalty, LAPR 6. 694, which is just a touch higher than conventional. I'd still say 100 percent of investors would choose the no prepayment penalty option and perhaps would choose to add a prepayment penalty to sweeten the deal. And the final two things we always go over are new programs, 30 year fixed second mortgages, the alternative to a HELOC for many customers that have a low rate first mortgage and need some cash out. You get cash out of a primary home, rates as low as 8. 125, final APR 8. 527, which is going to be lower than a HELOC and fixed rate. And we can do the same for our investment properties, get that cash out, as opposed to a HELOC at a rate of 9. 5 fixed, finally go to 9. 739. So those are our options for today, but let's get into our deep dive topic again, back to the basics this week. VA loans, we always do our live pricer, which, uh, we have to, you know, set everything the same. So it's a standard 20 percent down, which is not typical for VA. Very seldom do we see VA doing 20 percent down because they have all kinds of benefits, including 0 percent down. So, Jose, let's talk about some of the tips and tricks we can use for VA. Instead of just our standard cookie cutter scenario. Absolutely. I'm not going to share with you the regular VA, uh, loan quote, because you already shared that I'm going to share all the different outside the box solutions that we have for the VA loan. So let's jump right into it. VA loans, as you all know, is for our active military or, uh, our veterans. And also, by the way, for the spouses of deceased veterans as well. So our first option here is for the VA borrower with a 500 credit score or should I say low credit score because 500 is the minimum credit score but still 100 percent LTV. 7. 25 is our lowest cost option. 6. 875 is our lowest rate option for a hundred percent LTV finance, uh, VA financing with a minimum 500 credit score. Now for our manufactured home purchasers, VA loans, definitely amazing, um, great pricing 6. 75, almost that par. And, uh, you can buy that down all the way to 5. 125. That's an amazing rate sheet there. For those VA buyers looking to, uh, make their home their dream home, or they're looking to purchase a home that may have, uh, condition related items like vandalism, missing components that normally were not allowed to be, uh, to close with regular financing. The VA renovation loan is the solution. 6.75 is your lowest cost option at a cost of 0.449 points. And you can buy that down again, all the way to 5.125 at a cost of 2.699 points for a VA renovation loan purchase. Now if they really need that dream home, couldn't even find one that they could fix. Well, the VA one time close loan purchase. is an amazing option as well. This, uh, loan allows you to purchase the lot. In other words, purchase the land and also build the dream home all in one loan. And for those of you out there considering a manufactured home, by the way, there is a VA, a VA one time closed, uh, loan is also applicable for manufactured homes by the land. Put the manufactured home, the new manufactured home on the lot. And that's your one time closed construction loan for manufactured homes. Uh, 6. 75 lowest cost option. And you can buy that down all the way to 5. 125. Now, uh, for, uh, this is another outside the box, uh, solution here, the high LTV. VA cash out loan. This one allows you to go up to 100 percent LTV on a cash out. The standard is 90, 6. 75 lowest cost option. And you can buy that down all the way to 5. 75 at a cost of 1. 949 points. And then so you could compare, put a little context into the situation, the VA cash out here at a 90%. You can see substantially lower on the rate 6. 25 at a cost of 0. 221. And you can buy that down all the way to 5 percent at a cost of 2. 721. And our last option here is our VA rate and term streamline refinance. Uh, this one, uh, Is known as the Earl, uh, and is the option that does not require an appraisal, nor will it verify borrower income. And this is a VA to VA transaction only. 6. 125 is your lowest cost option and you can buy that down all the way to 5. 5 percent for your VA EARL. Rate internally financed up to 100 percent LTE. So look for the Mortgage Calculator for all your VA loans. All right. Thank you, Jose. I don't see any questions here. So no questions. We'll go ahead and wrap it up Remember that we do this at 11 a. m Eastern every weekday where we go through the live rates and then do a deep dive into a different loan type Happy friday everyone So we will see you next week on monday at 11 a. m Eastern for the next episode of daily rates live with the mortgage calculator. Have a great day, everyone