The VA's IRRL Refinance Loan ... Simple, Easy, & Beneficial for Veterans

The VA's IRRL Refinance Loan  ...

Simple, Easy, & Beneficial for Veterans

It sounds like an obvious.  Elementary too ...  

A loan program's primary mission should be:  Make life better and easier for the consumer(s) utilizing it.

If that's the goal, then the VA (Veteran's Administration)
has nailed it with their Interest Rate Reduction Loan.  This loan is better known by the acronym of "VA IRRL".  

What does the VA IRRL loan do?  

This loan serves U.S. Veterans already holding an existing VA Loan by refinancing their present loan into a new lower interest rate loan.   This is accomplished all while requiring limited documentation from veteran borrowers. 

Because of the VA IRRL loan, I'd say the VA can proudly declare "Mission Accomplished"!

If verification proves that a veteran's current VA loan is being PAID ON TIME, very little additional documentation will be required from the borrower at the time of their new mortgage application.  Most notably, no appraisal is required (once that info has been verified).  That is quite a savings to veteran borrowers, both in money and time.

Plus, some ... or all ... of the Closing Costs can be rolled into the new loan.  And veterans do not have to requalify for their new loan from an income/debt standpoint.

A Veteran's Administration IRRL Refinance Loan can typically be closed in a shorter period of time than other loans too.  This can be a huge benefit to Veteran Borrowers in search of much-needed monthly payment relief.

The new loan must meet VA's standards for veterans to receive the true benefits of doing the refinance.  This means that the payment savings need to offset the cost or increase in the Veteran's loan amount.  

Like most VA loans, the VA IRRL Refinance Loan can be made at 100% of the "Estimated Value" of the subject property.  Plus let me point out again ... the Closing Costs can be rolled into the loan (added to the base loan amount).  

Life is presently very challenging for many Americans ... particularly our veterans.  The VA IRRL Refinance Loan can help veterans face some of those challenges more easily.  And that should be all our missions ...

* Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicagoland ... IL or WI


Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf. I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI #216987

American Portfolio Mortgage Corp

NMLS #175656

Direct: 815.524.2280

Cell: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

  

             

   

 

  

Gene Mundt, Mortgage Originator, an Originator with 40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking: 

#Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in 

#Chicago and the greater Chicagoland region, including: 

The #LincolnWayArea, #WillCounty, (#NewLenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Channahon, #Romeoville, #Elwood, #Lockport, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of #Chicago, #CookCounty, and elsewhere within #IL & #Wisconsin. 

Your Referrals & Testimonials are Greatly Appreciated!

Mortgages, Don Quixote, and Going With the Flow

 

Mortgages, Don Quixote, and Going With the Flow

Do you remember the story of Don Quixote?  Or the Broadway play and musical, "Man of  La Mancha"?  

If so, you probably remember it includes a windmill, a donkey, and some pretty great music.  But a brief synopsis I found condenses this classic's storyline to ... 

"Don Quixote teaches us that life is to be challenged.  That Don Quixote does not accept current reality".

Our world has been blessed and well-served by many that have chosen NOT to give in or give up.  Consider these people as prime examples:

• Franklin Delano Roosevelt:  He was struck with paralysis when he was 39 years old.  
• Michael Jordan:  He was cut from his high school basketball team.
• Henry Ford:  Ford's first attempt at running a car-making company went belly-up.  So did his 2nd attempt.  On his third try, he started the "Ford Motor Company".  
• The Beatles:  Early in 1961, the Beatles auditioned at Decca Recording Studios.  It was pronounced that "guitar groups were on their way out".  The group, just 5 months later, signed with George Martin. 

In each scenario, history taught us that their stories didn't end with those defeats.  Great determination and pure grit were demonstrated by each.  Huge successes followed.   

A list of other people with similar stories could stretch on forever.  And without a doubt, they provide us much inspiration and great lessons to learn from.  Yet, they do NOT showcase the lesson or message I wish to spotlight here.

Instead, I wish to focus on the exact opposite ... giving in and "going with the flow" ... and the wisdom of doing so.

Now before you yell at me, consider:

There is an old saying that goes, "there is a time and place for everything".  

The challenge for us lies in knowing "when and where" those times and opportunities exist ...  

And I submit, that as it applies to the financing and processing of a mortgage, the act of "giving in and "going with the flow" can indeed be very wise.  The timing can actually be ripe for it.

During mortgage pre-approval, mortgage application, and mortgage process:  There are requests and actions that must be adhered to and acted upon should you wish to successfully close on your mortgage.  Simply stated, no lender will allow you to proceed to Closing or Escrow should you skip or leave them unfulfilled.

A lender's questions, as well as an Underwriter's, must be answered.  Their requests for action(s) must be taken.  Documentation needed must be submitted.  Not complying isn't an option.  There is no other path open to you should you wish to successfully complete your financing goal.

Those applicants that fashion themselves after Don Quixote ... that don't accept that reality, choose to comply slowly, or refuse to comply at all?  They typically don't fare well.  

While those applicants that "give in" and "go with the flow" ... in other words, comply with their LO's requests quickly and thoroughly ... benefit greatly by doing so.  

I have found that those applicants navigate their mortgage process far more easily.  They also stress over their loan process and processing far less and are far happier at its completion.

As a mortgage applicant, if you have performed your due diligence while searching for your loan officer, you'll know with confidence that it's safe and wise to "give in" and "go with the flow".  That your loan officer is experienced, knowledgeable, and acting on your behalf when they make requests.

Listen, I'd never suggest that anyone give up on those goals that are important to them.  Too many wonderful things can happen or take place when you don't.

But I do suggest that you learn to kick back, believe, trust  ... "give in" and "go with the flow" where it is appropriate and wise to do so.  

Wonderful things can take place following these actions too ...

* Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicagoland ... IL or WI


Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf. I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI #216987

American Portfolio Mortgage Corp

NMLS #175656

Direct: 815.524.2280

Cell: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

  

             

   

 

  

Gene Mundt, Mortgage Originator, an Originator with 40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking: 

#Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in 

#Chicago and the greater Chicagoland region, including: 

The #LincolnWayArea, #WillCounty, (#NewLenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Channahon, #Romeoville, #Elwood, #Lockport, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of #Chicago, #CookCounty, and elsewhere within #IL & #Wisconsin. 

Your Referrals & Testimonials are Greatly Appreciated!

Homeowners Insurance: What to Expect When Purchasing & Financing a Home

 Homeowners Insurance:  What to Expect 

When Purchasing & Financing a Home

There are a lot of moving parts to know about and consider when purchasing a home and applying for a mortgage.  There's the mortgage application itself, the requests for information and documentation, the processing and underwriting, seeking the loan approval, and finally closing.  

No doubt, it's a lot for buyers to digest at once.  So it should come as no surprise that borrowers have a boatload of questions to ask along the way.

One of the questions I hear most commonly surrounds the topic of mortgage closing costs ... most specifically those pertaining to Homeowners Insurance.   Many of my borrowers ask ... 

"Why must I pay a full year of a Homeowner policy at the time of Closing?"  

The topic of Homeowner Insurance is especially confusing for those borrowers that, moving forward, will have an insurance escrow payment as part of their new monthly mortgage payment.  The short answer to the question is rather simple ... it's mandatory.

The more complete answer is that Mortgage Lenders require that one full year of coverage is in place from the time of issuance (typically the Closing/Escrow date).  That guarantees them that they have insurance protection for the interest and investment they will hold in the property.  

A "Mortgagee Clause" naming the specific Lender providing the mortgage is required on the Homeowner Insurance policy.  This mortgagee provision grants special coverage and protections to the mortgagee (Lender).  

Those are: 

• That if there is a loss or damage to the property, the Mortgagee (Lender) will be paid/reimbursed for that loss/damage
• That if the policy is to be canceled, the Mortgagee (Lender) will receive advance notice
• That the coverage is continuous, even if the insured damages the property via some intentional act 
• That the Mortgagee can transfer/sell their rights to another Lender on the secondary market, if they choose (The acronym ISAOA is used, meaning "Its successors and/or assigns")

Now, it's true that most home buyers/borrowers choose to have their monthly insurance costs (insurance escrow) included in their mortgage payment.  But again, many of my borrowers ask me "Why this monthly escrow payment is deemed insufficient and will not meet the needs of the Lender?" 

First, it's important to know how a Homeowner Insurance policy is paid ...  

Homeowner Insurance is typically paid once a year, at the policy's renewal time.  The renewal date normally coincides with the anniversary of the mortgage Closing date or "initial activation" of the insurance policy.  

Further, when you Close on your home loan, you skip a month and then make your first monthly mortgage payment the following month.

Here's an Example:  

1. Close on your Mortgage in November 
2. No monthly payment due in December
3. 1st monthly mortgage payment is due in January

However, this means that a borrower would be shy one insurance escrow monthly payment at the end of their first year.  Only 11 monthly mortgage and escrow payments will have been collected.  

Most Mortgage Servicers pay the annual insurance premium due in advance of the actual due date (sometimes up to 4 to 6 weeks early) so that there is no lapse in insurance coverage.  That means there is a great likelihood that the escrow account would not have accumulated the required monies needed to make full payment at that point in the year, especially if the Insurance premium gets paid before the Borrower's monthly payment is made.

Mortgage Servicers have been provided a right given them in the Mortgage Escrow Provision Act (called Illinois Mortgage Escrow Act within the State of IL) to maintain a (2) two- month cushion of monthly escrow items (including insurance).  This allows for any annual changes (increases typically) in costs for real estate taxes and (HOI), Homeowner Insurance.

So what does this all mean for the borrower?  

It means that as much as 16 months and no less than 14 months of Homeowner Insurance will be "collected" or due at their time of Closing.  Of that money collected, a full year (equal to 12 months of escrow) immediately goes to the insurance company as payment to initiate the Homeowner Policy.  The remaining 2 to 4 months of collected money goes into their mortgage escrow account.

The escrow account is managed by the Mortgage Loan Servicer.  Escrow monies are held in reserve.  Subsequent monthly escrow payments are added to this reserve each month when the borrower makes their monthly mortgage payment.  The cycle renews itself each year on the insurance policy renewal date.

For those refinancing a mortgage with a Homeowner Insurance escrow in place, this process takes on a bit of a different look ...  

Much depends on the Homeowner Insurance Policy renewal date and the date of the new loan's Closing and subsequent first payment date.  I'll address the process for Refinance Escrows more thoroughly in an upcoming post.

Anyone considering a home purchase, or presently doing so, should consult with their loan officer as to the specifics and coverage needed within their own Homeowner Insurance Policy.  Once that information is secured, the search for a policy should begin.  That way the policy will be ready and in place at the time of your upcoming Mortgage Closing.

Should you have questions, reach out ...

* Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicagoland ... IL or WI?


Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf. I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI #216987

American Portfolio Mortgage Corp

NMLS #175656

Direct: 815.524.2280

Cell: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

  

             

   

 

  

Gene Mundt, Mortgage Originator, an Originator with 40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking: 

#Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in 

#Chicago and the greater Chicagoland region, including: 

The #LincolnWayArea, #WillCounty, (#NewLenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Channahon, #Romeoville, #Elwood, #Lockport, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of #Chicago, #CookCounty, and elsewhere within #IL & #Wisconsin. 

Your Referrals & Testimonials are Greatly Appreciated!