topic Re: VA IRRRL Refinance in Mortgage Loans

VA IRRRL Refinance

LakeLife — Wed, 21 Aug 2019 16:06:50 GMT

Wells Fargo sold our loan to M&T Bank not six months ago, and I guess WF missed us. I just got a call from the person that did our VA IRRRL in 2015 with Wells Fargo, and he said that he could refinance us at a 3.25% IR (3.30% APR) for 30 years. We currently have a 3.875% IR, and this seems like a no brainer to me. There is a small funding fee, but it will pay for itself in less than one year, and we plan on being in the house another 5 years. With the real estate market continuing to go up in N/VA (even more so after the Amazon HQ2 was announced) I think this will be a good move for us.

Thoughts?

Re: VA IRRRL Refinance

MauiMan85297 — Wed, 21 Aug 2019 18:04:54 GMT

What score are they telling you, I'm doing VA loans at 3.0% with 700 score and the rate they're quoting you is that PAR rate or a buydown/credit?

Re: VA IRRRL Refinance

LakeLife — Wed, 21 Aug 2019 20:42:33 GMT

@MauiMan85297 wrote:
What score are they telling you, I'm doing VA loans at 3.0% with 700 score and the rate they're quoting you is that PAR rate or a buydown/credit?

Is that 30 years? This is the rate they pulled from Experian. I've had a couple of HPs in the last month. They didn't mention anything about a PAR or buydown/credit rate. This is a strict VA IRRRL refinance. Thanks for your help!

Re: VA IRRRL Refinance

MauiMan85297 — Wed, 21 Aug 2019 20:59:45 GMT

Yes it's a 30 year fixed VA IRRRL. I understand it's an IRRRL and you should have received an LE (loan estimate), there it should tell you if you're being charged points for that rate or getting a lender credit with that rate. VA IRRRL's guidelines stipulate that your rate must be reduced by .5% (which it is) and that you're able to recoup the cost of your loan within 36 months (Take costs of loan and divide by your P&I payment savings).

Ex: $3100 in closing costs

Present PI: $900

Proposed PI: $830

Monthly PI savings: $70

$3100/$70= 44.2 months

By this example it wouldn't pass VA guidelines.