VA Home Loans Blog

We're Changing for You

Mon, 07 Mar 2022 23:28:25 GMT

We're Changing for You

Just because our VALoanMN rates have been stuck in these historically low rates doesn’t mean we are also stuck. There are changes coming to this web site. We believe they will be even more user friendly yet still provide the information you need to take advantage of your earned VA benefits in Minnesota, the Dakotas, Iowa and, for those seeking sunshine and warmth sometimes absent from our midwestern states, we offer superb VA loans in Arizona.

As our regular VALoansMN blog readers may know we’ve been here for years providing home purchase and refinance information and to maintain our leadership in VA lending we are working on a new web platform. We think you’ll find the change almost seamless and in many ways better for you to get the information you need to make a decision on how to finance (or refinance) your VA home loan.

VALoansMN is part of the Luminate Home Loans organization. Using the tools and bargaining power of Luminate we are able to bring Veterans a wide range of loan products. Our focus is of course on VA mortgage loans. We’ve detailed the many benefits of this loan reserved for those who have served or are currently on active duty. Luminate opens doors for other loans that might better fit your needs. When you reach out to us we start comparing many loan products and can give you choices.

We’ve been very pleased so many of you have found these blogs, this web site useful. We look forward to better serving your needs with our upcoming changes. Stay tuned, stay informed and most of all, stay in touch with us at VALoansMN.

Here Comes Higher Mortgage Rates...Still Maybe

Sat, 15 Jan 2022 23:26:39 GMT

Here Comes Higher Mortgage Rates...Still Maybe

Wow! We just completed a historic analysis of past mortgage rates and what a surprise. As we’ve reported several times on these pages current mortgage rates are at historic lows. We don’t see that changing much anytime soon. Let us give you some historic perspective we gained in our recent analysis. But first, we have a short customer story to pass on.

A client of ours at VALoansMN is searching for a house to buy. This client (who gave us permission to tell you this story) has had a rough financial past. Due to some misfortune this client was forced into a short sale and bankruptcy a few years ago. Now our client is ready to re-enter the housing market. This what is termed the “boomerang buyer”. A buyer forced out of the housing market during a housing recession and now able to come back.

Our client is not unlike hundreds of thousands of other folks who had some hard times but is now recovering and wanting to buy a home. How did our client recover? Following our advice this client immediately opened a few lines of credit. One was an auto loan through a local credit union. Another was a credit card available to someone with a recent bankruptcy. The credit card came with a high interest rate so she paid it off each month. Now she comes to us to pre-qualify for an FHA mortgage (yes, we have those in addition to V.A.). Did she get a surprise!

Just five years after her bankruptcy and three years after the short sale of her home (she’s been a renter all this time) she and her husband easily qualified for an FHA mortgage. This couple has credit scores just under 700. They’re now searching for a house knowing we are able to secure a mortgage. They will once again be homeowners. The loan rate they can get is under four percent! So what about future mortgage rates?

As we’ve previously reported) the FED has is starting to worry about the inflation you’ve been experiencing. Yes, we’ve seen mortgage rates increasing from these historically low amounts. What happened to mortgage rates back in those days of previous rate increases? We were surprised to lean in our analysis, not much. From 2004 to 2006 the FED raised the short term rate (federal funds rate) by 4%. During that period mortgage rates rose less than 1%! Just because the FED is raising rates doesn’t mean you’ll see a corresponding increase in your mortgage rate.

A final word: We are so grateful to you for trusting us with your home mortgage needs. We wish you and yours a very HAPPY NEW YEAR!

Watch Mortgage Rates Go Up...Maybe

Sun, 12 Dec 2021 23:22:21 GMT

Watch Mortgage Rates Go Up...Maybe

As we delve into what’s happening to the rate you will pay for a mortgage let us first talk a bit about this holiday season. It is a time of giving and giving thanks. Last month, and we at VALoansMN hope that every month of the year, we express our gratitude for giving us the opportunity to serve. It is a gift we receive from you every day of the year. Again, our most sincere thank you for that. Now we want to give you a piece of advice.

As you have no doubt noticed we have spent some considerable time on these pages talking about the historic VA mortgage rates that have been available for the past couple of years. We believe those days may be numbered so here’s our advice; if you or someone you care for is considering the need for a loan to buy or refinance a house, please, please let us at VALoansMN help you make that move sooner rather than later. We see changes coming, maybe slowly, but they are coming.

The Federal Reserve committee (commonly referred to as The Fed) responsible for much of the interest rate climate in our economy is talking rate increases. Currently the rate the Fed controls is at 0 to 1.75%. Experts expect that rate to rise. What might that do to your monthly payment on a VA mortgage loan?

First, we make an assumption that may or may not be accurate. The assumption we make is if the Fed raises its short term rate, the Federal Funds Rate, by a quarter point we would see a quarter point increase in the mortgage rate. It’s possible we may not see that mortgage rate increase. It is also possible that mortgage rates could increase more than a quarter point. No one, as of this writing, knows for sure what will happen. It is safe to say that as the Fed raises rates VA mortgage rates will increase. Back to our assumption that rates will increase in tandem with the Federal Funds rate and what that means to your mortgage payment.

If you have borrowed $200,000 and your rate is 4% your monthly payment would be about $955. When the Fed hits the target of 3.5% for the Federal Funds rate which is an increase of over 1% that same $200,000 mortgage would require a monthly payment of $1,100 or an increase of about $145! Need we point out that the VA mortgage is much more affordable at today’s rates than what may be coming?

When will this increase occur? That is a very difficult question. Former members of the Fed are suggesting it will take around 3 years. The Fed meets every six weeks. To increase rates by over 3% in three years means an increase of a quarter percent (point) at every other meeting for the next three years. However, it is possible the Fed could raise rates by a half a point or more at one meeting. This is considered not likely given the current state of this sluggish economy. Six months from now it could be a different story.

To repeat the advice we give you this holiday season: please, if you are seeing a need for a new mortgage loan either to purchase or refinance an existing loan, please call us soon so we can make this move more affordable than it may be in the future.

Housing: Up or Down? A VA Loan Perspective

Tue, 02 Nov 2021 22:19:01 GMT

Housing: Up or Down? A VA Loan Perspective

For those sitting on the sidelines waiting for the home buyers’ market to arrive we have two words: good luck. The Twin Cities metro area remains favorable to home sellers as does the entire state. Forecasters see no change in the coming year.

According to data from area real estate associations home prices escalated about 14% in the Twin Cities area in the past year. Demand is simply outpacing supply. In St. Paul for instance realtors say they’re receiving up to 7 offers per property. Real estate investment firms remain bullish for the coming year. There is some good news for VA home loan borrowers, however.

At VALoansMN we have noticed VA mortgage rates are lower than conventional mortgage rates. In addition to this good news VA loans are available no matter the cost of the home. If you can afford the loan, the VA will back home loans in all areas of the upper Midwest regardless of the home price. Speaking of affordability, the good news for VALoansMN clients is mortgage rates remain extremely low.

In blogs past we have outlined many of your VA loan benefits but we think they are worth listing again:

No down payment required
No monthly mortgage insurance
Limited closing costs (which can be paid by the seller)
No penalty for paying off the loan early
Personal access to us at VALoansMN to answer any questions or concerns

If you’re sitting on the sidelines waiting for the market to turn in favor of buyers, you may have a long wait given the data coming from real estate analysts.

Do not make any real estate investment decisions based solely on information in this blog. Real Estate market forecasts in this blog are based on an educated guess and should not be considered financial advice. Always seek professional financial help when investing.

Housing Inflation...Is It A Bubble?

Mon, 20 Sep 2021 22:15:39 GMT

Housing Inflation...Is It A Bubble?

Inflation? What inflation? Surely you don’t believe your lying eyes! Let’s look at the numbers and sort this out.

The most apparent sign of inflation is seen at the gas pump. Fuel prices have soared since the beginning of the year. That in turn has resulted in increased pricing for many goods because it costs more to take goods from point A to point B. Here’s an insight into the economy; businesses pass increasing costs whether it be transportation or taxes on to consumers (you). But there’s another sign of inflation and that is the cost of housing.

Strictly speaking inflation relates to the money supply. When the Federal Reserve prints money, which they are doing at record levels, the result is more dollars chasing fewer goods. Perhaps you’ve noticed, housing prices have escalated. Generally, there are fewer homes for sale than usual. Even though the Federal Reserve is inflating the money supply they’ve continued to keep interest rates extremely low. It’s easier to borrow more because these low interest rates will keep payments down. This is a classic example of more dollars (loans) chasing fewer goods (houses).

The Case-Shiller National Home Price Index indicates home prices in major cities nationwide rose 19% year over year as of July 1. Since 2006 home prices nationwide have increased 41%. Is this a bubble soon to pop?

Many economists, especially those tied to real estate firms, say no:

“…Zillow economist Chris Glynn said too much demand and not enough supply means the housing market can’t tumble overnight. But the double-digit price hikes won’t last forever.

“We’re seeing signs that the market is beginning to cool just a little bit, and by cool I mean house price growth is slowing, not that prices are going to decline,” Glynn said.” - Marketplace, 08/31/2021

According to the National Association of Realtors it is millennials with good credit scores driving this market.

At VALoansMN we continue to offer millennials and others great rates at these historically low interest rates. Be prepared if you enter the housing market. Let Brad arm you with a pre-approval letter which will strengthen your offer to buy a home in this hot housing market.

It doesn’t cost anything to talk and talk can sometimes help you make the right decision in such an important step toward home ownership or refinancing.

NO Monthly Mortgage Insurance with VA Loans

Thu, 05 Aug 2021 22:11:10 GMT

NO Monthly Mortgage Insurance with VA Loans

It’s a beautiful thing to be able to buy a home using your VA benefit borrowing 100% of the purchase price and NOT PAYING any monthly mortgage insurance fee like that required by an FHA or conventional loan. That is one of the several perks of a loan from VALoansMN. There are others but we’ll take this time to focus on borrowing 100% of a home purchase price with your VA loan.

Here’s some comparison numbers that make your VA loan benefit look even better. An FHA loan only requires 3.5% down. But you’re going to pay an upfront mortgage insurance premium equal to 1.75% of the loan amount. That’s not all. You’re also going to pay a monthly mortgage premium based on the loan amount. If the loan is less than $625,500 multiply your loan amount by .008 and divide by 12. For example:

$250,000 x .008 = $2,000/12 = Monthly Mortgage Premium of $166.67

Let’s repeat and emphasize: VA loan holders pay NO monthly mortgage premium. But you will pay an up front funding fee. At least, most people will pay this up front fee. Some don’t and we’ll explain who doesn’t have to pay any fee later. For now, let’s discuss your VA funding fee.

The funding fee paid up front can be rolled into the loan amount so you can actually borrow 100% of the purchase price PLUS your funding fee. Use these numbers to figure your funding fee:

If you put less than 5% down your funding fee is 2.3% of the loan amount. It decreases if you put more money down.

Money Down:

5-9% the fee is 1.65% of the loan amount
10% or more the fee is 1.4% of loan amount

The above figures are for first time users. If you’ve used your VA loan benefit before the funding fee is greater.

No money down the fee is 3.6% of the loan amount.
5 to 9% down the fee is 1.65%
10% or more the fee is 1.4%

Notice the fees for 5% or more for repeat users are the same as for first time VA loan borrowers.

Our discussion thus far has been about home purchasers. What if you are refinancing? If you’re simply wanting to lower your VA loan rate by refinancing your funding fee is . 005 x Loan Amount regardless of prior use or service.

Earlier we suggested not everyone has to pay the up front funding fee. There are numerous exempt veterans. Here’s but a few:

Purple Heart recipients
Veterans who receive compensation for service related disabilities
Veterans who would receive disability payments if they didn’t have retirement pay
Surviving spouses eligible for a VA loan

We hope this may give you an accurate picture of the great benefit you receive thanks to your service. We encourage you to call Brad at VALoansMN/Luminate Home Loans to discuss your personal situation. He is here to help you reach you home financing goals.

Are We in a Housing Bubble?

Thu, 01 Jul 2021 22:03:41 GMT

Are We in a Housing Bubble?

If you’re among our clients at VALoansMN who’ve thought of purchasing a home you may also be among those suffering from sticker shock. Home prices have accelerated at an alarming rate. Is it another real estate bubble? What is driving this increase in housing prices? There are several key factors at work and we at VALoansMN have looked at several.

First, we have to acknowledge the economic laws of supply and demand. When demand is greater than supply home prices are pushed upward. We have to go a bit deeper into this equation to get a better understanding.

Second on our list of factors is the lack of supply. Why aren’t there more houses on the market? A recent Housing Market Index (HMI) report sheds some light on this issue. HMI is the result of a survey of national home builders and they tell us there are serious building material shortages resulting in fewer new homes being built.

According to builders the number one shortage of materials is appliances. 95% of builders say there is a shortage of appliances. Most say it’s a serious shortage. Next is framing lumber. 94% of the nation’s builders say they can’t get enough framing lumber and because of this demand prices for lumber are through the roof. Our third material shortage say the builder is Oriented Strand Board. That’s an engineered wood product used in sheets. 92% of builders report there’s a short supply of this needed material. The list continues with shortages of Plywood, windows and doors, trusses, copper wiring, plumbing fixtures and more.

These shortages have resulted in some of our housing shortage. But, while we see a home building shortage we don’t see a corresponding shortage of demand. The result reflects back on our original economic treated stated in paragraph number 2 above. Housing prices are accelerating due to a strong demand and a shortage of houses for sale.

Is it a bubble? There is no indication we are repeating what occurred in 2007-8 when housing prices collapsed. That was primarily driven by faulty policies foisted on lenders by the federal government. Remember liars loans? The good intentions of federal policy makers encouraged lenders to make loans available to almost anyone despite their financial well-being. So, the short answer is: we see no similarities between recent real estate bubbles and what’s happening today with housing prices.

How to WIN in Today's Housing Market

Tue, 01 Jun 2021 21:58:40 GMT

How to WIN in Today's Housing Market

Imagine how one simple action can change your future. We know of such a case and we’ll share it straight ahead. But first it’s time to take a look at what the heck is going on with housing and mortgage rates.

Anyone house shopping today can’t fail to notice how quickly houses are disappearing from the market place. A home is put on the multiple listing service one day and is gone the next. That his occurring in almost every community in the country. Not only are these houses selling quickly, they are selling for prices well above what they were just one year ago. The price increases are due to the economic laws of supply and demand. When either the supply is low or the demand is high the price of any good, even houses, will increase. When demand is greater than supply it too will put upward pressure on prices. In the housing market today we have both a limited supply and an increase demand. There’s one other important factor which might add to the current housing boom. The cost of borrowing money remains extremely low.

Just a few years back we at VALOANSMN saw a rush of house refinancing when rates had dropped to five percent. Today, rates are even lower, in fact, they are much lower. You can thank the Federal Reserve for that. The FED continues to print money and buy government bonds. This demand from the FED keeps bond prices elevated and when bond prices go up the interest rate they offer goes down. We’ll save the explanation of why this happens for another time but, for now, just know the FED is the borrower’s best friend.

So what does this mean to home shoppers? In a word it means competition. When more than one buyer wants a home it means you’d better be in good financial shape when you make your offer. When a home seller has more than one offer to consider what can make (or break) your chances of success? The answer takes us back to our opening statement; imagine how one simple action can change your future.

As a home buyer you must have an appealing financial package to present to a home seller. What is this appealing package? It includes a statement from a lender that you are completely qualified to purchase the home at the price you’re offering to the seller. The simple act of picking up the phone and calling Brad at Luminate Home Loans/VALOANSMN might change your life.

Brad can help you put together that appealing financial package. Not only that, he will write a letter to the home seller stating your case. This letter is sometimes referred to as a pre-qualification letter or form. Do not fear your financial past. If you’ve had trouble, tell Brad, let him work with you to improve your situation. The simple act of a phone call may be a major step forward in your life’s journey. Here’s the number to get you started on the simple step toward success in today’s frantic housing market: 612-240-9922

Navigating VA Loans in a Sellers' Market

Mon, 26 Apr 2021 21:54:14 GMT

Navigating VA Loans in a Sellers' Market

Well, just when you thought the real estate and mortgage market couldn’t get any crazier, it does. First let’s look at your prospects of using your VALoansMN mortgage to buy a home.

We are definitely in a sellers’ market. That’s good news and not so good news. The good news is if you are now a homeowner wanting to move up, down or sideways you’ll likely get more money for your house that you would’ve just a few months ago. The not so good news is, you’re now a buyer and you’re going to have to find a house to buy. While your house has been going up in value so have the homes you may want to buy. If you’re buying, you’d better have all your ducks in a row.

The first thing you want to do is call Brad at Luminate Home Loans. That’s the company umbrella where you’ll find VALoansMN. Brad is a VA loan specialist. We don’t mean he just “does” VA loans. We mean he specializes in them. He knows the ins and outs. He knows how to get it DONE. Why is this the first thing to do? Because you’re going out into a sellers’ market to buy your next (or first) home and you’d better be prepared. By preparation we mean you’d better be able to show the seller of the home you want that you are qualified to buy it. A seller wants to know that on the day of closing their money will be there. Brad can help you with this. It’s called “pre-qualification”.

Brad can guide you through this process over the phone. He’ll ask you questions about your financial situation, your job history, your income, your debts. He puts all this info together and he can tell you how much of a loan you can qualify for. He will give you a pre-qualification form or letter which you give to your real estate agent. The agent will bundle that up with your offer to buy a house and present it to the seller. A good real estate agent will supplement this paperwork by telling the sellers’ agent why you should be the one to get the home. There’s a reason for this and we’re going to share some real estate secrets here.

Let’s say you’re a home seller and you get more than one offer (this is likely to happen in today’s market). One of the offers the buyer is using a conventional mortgage and putting down 40 or 50% in cash. The other buyer is using a VA loan and financing 100% of the purchase price. Which buyer, in your opinion, is the more qualified to buy the home? Here’s our answer and the answer we hope you’re real estate agent would have. Both buyers are qualified because on closing day what comes to the seller is ALL CASH. The VA loan represents a buyer who has served the country. The VA loan comes from a lender just like a conventional mortgage except the VA loan has backing from the federal government. That protects the lender from loss. So the one buyer may have a conventional mortgage and money in the bank but the VA Loan buyer is, to some degree, being backed by the Federal Government.

When you select a real estate agent to represent you in this sellers’ market make sure this person is a believer in the use of VA loans. Make sure they can tell that seller why YOU are the one that should get the home. It may make the difference between two (or more) almost identical offers.

Now, pick up the phone and call Brad who is a loan officer that is a believer in VA Loans, who knows how to get it done and will be a major player on your home purchase team. Here’s his number: 612-240-9922. He’s waiting on your call.

Moving Up and Moving On

Thu, 04 Mar 2021 22:51:33 GMT

Moving Up and Moving On

Seems appropriate we would be writing this on March 4th because we at VALoansMN have a story to tell which is based on our continuing to March forth. No doubt you have noticed there’s a new name associated with us now-laminate Home Loans.

There’s a lot of background rumination behind this change but it boils down to this: we’re watching out for you. Any change we might make is based on the ability to better serve the needs of our Veterans and Active Duty Personnel. When VALoansMN began service well over a decade ago it was to help qualifying individuals navigate the ins and outs of using a VA guaranteed loan to purchase or refinance a home. In those days we thought a mortgage rate of 5% was fantastic. It was, in those days. So much has changed.

We’ve moved on from those early days and today we are part of Luminate Home Loans. While our history shows a long journey we think the path to your success in getting a VA loan has shortened. We know how to navigate that path and we think make it easier for you. Not only easier, but much more rewarding.

Those record-breaking rates of years ago are gone, replaced with even lower, much lower, rates. VA loan rates, like all mortgage rates move up and down but they fluctuate in a rather tight band. In recent days we’ve seen a slight move upward but this move is hardly noticeable in a monthly payment.

We’ve also moved on by becoming licensed to serve VA mortgage needs not only Minnesota where it all began, but now in the Dakotas, Iowa, Florida and Arizona. If you’re planning your own move make sure and check with us so we can bring our home town service to you no matter your new location.

Finally, please update your contact information for us at VALoansMN. Brad is till your go-to guy for everything involving home loans. His phone number remains 612-240-9922. The email (we love getting emails from you) is brad.Christensen@goluminate.com .

As you march forth in your life we’re here beside you waiting to help with anything involving home finance. We’ve enjoyed our trip together so far and look forward to even better things ahead.

The Road Before Us

Mon, 04 Jan 2021 22:48:01 GMT

The Road Before Us

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.

Lock & Load: Be Ready to Make Your Move

Mon, 07 Dec 2020 23:29:49 GMT

Lock & Load: Be Ready to Make Your Move

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/Luminate Home Loans. 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.

It's Just Another Day...and It Looks Good For You!

Thu, 05 Nov 2020 23:30:38 GMT

It's Just Another Day...and It Looks Good for You!

It’s another day and another record low for mortgage rates. That story is becoming old news. Thankfully, so is the election which has dominated the media psyche for months. One of the candidates likes the phrase “speak truth” so let’s do that now.

Truth is, VA mortgage rates in Minnesota and surrounding states are still falling. Most financial pooh-bahs see no change in that for the foreseeable future. Lenders are being swamped with applications for home refinances and purchases. We’re happy to report VALoansMN is still able to handle the rush. We’re still getting loans done and done on time. We understand when you’re buying a home the clock is ticking and time is of the essence. That’s why we prioritize home purchases over refinance requests.

This is not to say we don’t value veterans requests to take advantage of these low rates by refinancing a mortgage. We take them very seriously and GET IT DONE. We simply want to make sure veterans buying homes meet any contractual obligations by performing on time. Don’t hesitate to reach out to us if we can help you save money on your monthly mortgage payment. You’ll be surprised how easy it is to refinance a VA mortgage.

Let’s speak another truth. Aren’t we all glad the election is over and we no longer have to be bombarded with all the political ads? Now there’s one hurdle left. We’re in the Medicare open enrollment period so our tv time is dedicated to ad after ad from insurance companies wanting to enroll seniors. You will be relieved of that on December 7th (Pearl Harbor Day). Then, it’s the Christmas and Hanukkah. But today, let’s just say HAPPY THANKSGIVING!

Cut Through the Noise

Wed, 07 Oct 2020 22:31:05 GMT

Cut Through the Noise

“Silence is golden”, remember that song from the Four Seasons? The complete idiom is “speech is silver, but silence is golden”. Given all the noise we’re immersed in today we could use a little of that golden silence. Our news broadcasts are wall to wall politics but it seems little has to do with our every day lives. We take a few moments to offer something that does in fact impact your life and your pocketbook.

It is hard to imagine for those of use who have been around for a while that you can borrow money at such little cost. We’ve written previously about the record low VA mortgage rates and we’ve urged veterans and active duty military personnel to take advantage before the opportunity passes you by.

So, given all the noise we’re hearing today about all the bad things happening let’s look for some good vibrations; rates that reached record lows for veteran home buyers and owners are even lower today. Yes, when VA loan rates reached down into the 4% range we exclaimed “this has not been seen in our lifetimes, don’t miss out”. Here we are again proclaiming “this has really, really not been seen in decades and decades."

We at VALoansMN are now offering home purchase loans below 3%! Remember of course there are numerous factors that go into setting rates on a VA mortgage. Your credit history, your income, the value of the home to name a few of these factors but, we can assure you these low rates are not set aside just for the top 1%. They are available for many.

We’ve been specializing in VA lending for over a decade and we know what’s available for home purchases or refinancing. There’s a reason we are the NUMBER ONE VA lender for scores of veterans in Minnesota and surrounding states.

Word from the Federal Reserve is these low interest rates might be around for some time so we don’t want anyone rushing in. Take your time to make the right decision. When you’ve enjoyed some quiet time (that ‘golden’ time) to think things through just know we’re here for you just as we’ve been throughout the years.

The VA Loan Gift

Thu, 10 Sep 2020 22:31:34 GMT

The VA Loan Gift

“There’s nothing to fear but fear itself." Famous words taken from FDR’s 1933 inaugural address. There is today lots of fear mongering. Let’s take a look at some good stuff and put the fears behind us.

Last November we wrote on these pages:

Veterans and active duty military are being given a financial gift by the mortgage market. A $250,000 house financed with a V.A. loan would have cost about $1,500 a month back in the days when rates were at 6% or almost $2,200 when rates “dropped” to 10% as we described in the previous paragraph. Today that $250,000 mortgage will cost you less than $1,200 a month. That is the gift the mortgage market is bestowing on you. Buy more house for less money today than in decades past. Look where we’re at!

Yes indeed, look where we’re at! Today the picture is even rosier than less than a year ago. That $250,000 VA loan today will cost you over $100 a month less than one year ago. UNBELIEVABLE!

Despite the COVID fears, we are in a housing boom. Will it last? No one knows. There is a fear (there’s that word again) since so many workers have lost jobs we may see a serious rise in the number of foreclosures in coming months. Many lenders offer these unemployed a forbearance meaning they are excused from making mortgage payments with no damage to credit. This payment postponement (not forgiven) lasts from 6 to 12 months. What happens at the end of that period if a home owner still has no income. It could, we emphasize could, start a foreclosure action. But, less than 7% of all mortgages are in forbearance.

We return to the good news. Veterans and active duty military personnel are being give a gift of extremely low loan rates. And the Federal Reserve is now saying they do not see any rise in the Federal Funds rate in the foreseeable future.

Call Brad today at 612.240.9922 and unwrap this financial gift!

Time to Remove the Mask

Fri, 07 Aug 2020 22:31:56 GMT

Time to Remove the Mask

Since you’re here reading this we assume you’re also visiting other sites and seeing posts about what a dreadful year this has been. It’s time to take of the mask and see some reality. Things are not nearly as bad as some believe. We’ll explain in this post.

When 2020 began there was underway an economic boom. It would continue until early March when governments (mostly state and local) began shutting down the economy. Tens of millions of people lost jobs, some lost businesses and lifetime savings. But through it all a bright light of optimism continues to shine.

When the stock market was plunging 30% taking with it retirement savings value one economic sector stood strong: housing. Your home value stayed put. In addition to this housing strength the low cost of borrowing remained. No one knows what will happen to interest rates but it is clear they remain at historic lows. Some VA borrowers are seeing mortgage rates at 3% or lower. With house prices holding steady think about what it means to your pocketbook to lock in a loan at 3% for 30 years! Where do you think rates will be in 10, 20 or 30 years? Our active duty military and veterans taking advantage of this today may look back and think it’s the smartest financial move they’ve ever made. \There are other reasons for optimism. Even though tens of millions lost jobs those jobs are coming back at record rates. VALoansMN is still qualifying clients refinancing or buying homes at these historic low rates.

The year 2020 may be an unsettling year in some regards but when we get through this, and we WILL get through it, this smart move in home financing will be something to be proud of and perhaps we’ll think 2020 had its ups and downs but here we are, financially more stable than when it began.

Has Your Time Come?

Tue, 02 Jun 2020 22:32:15 GMT

Has Your Time Come?

There’s probably not been a time when we’ve had such a forced opportunity to examine our current living conditions. For over two months we’ve been told to stay home. How are you feeling about that home? This may be an opportune time to make your move.

In recent weeks we’ve been bombarded with news about the novel virus then came the demonstrations and riots over the death of a citizen at police hands. But there’s other news that may have been crowded out and we at VALoansMN believe it needs to be brought forth.

Given this opportunity to live day after day inside your home with no usual breaks of going to work, socializing with friends and family or anything other than necessary trips to the store you may be having second thoughts about your current living situation. Do I really like the size of my house? Is the neighborhood the kind of place I want to live? If I were to move, how much would it cost? Only you can answer the first two questions but we can help you with the third.

Minnesota veterans have long turned to us at VALoansMN/Luminate Home Loans for home financing. We’ve been the lender of choice for many of your county’s service officers. We believe we are the number one VA loan choice because we’re local. When you call Brad (612.240.9922) you’re not talking with someone in Denver or Detroit, you’ll be talking with someone who lives where you do, understands your needs as a veteran living in Minnesota, the Dakotas or Iowa. We think that’s important. We’re not a loan factory churning out products to increase our numbers like the 1-800-get-my-mortgage outfits. Now, more than ever, we want to help you in your home financing decisions.

Is now a good time to make a move? Look, given today’s extremely low interest rates you may never be in a better position to upgrade your living situation to better meet your and your family’s needs. The best way to start is to call us at VALoansMN/Luminate. We promise you’ll get honest, straight-forward information about home financing. No sales pitch, just the facts.

So while all the news is about big social issues just know that we are here to help you meet your own personal needs. It’s what we’ve been doing here in Minnesota for over a decade. We’re here when you need us most.

Call Your Mortgage Company

Fri, 01 May 2020 22:32:29 GMT

Call Your Mortgage Company

In times such as these there are many who’ve lost jobs or are unable work. Paychecks have stopped coming and the choice may be between paying bills or putting food on the table. We have some good news if you’re in such a condition.

The U.S. government was caught off guard with the onset of the Virus pandemic but it moved quickly to recover. Part of this recovery is what is commonly referred to as the CARES (Coronavirus Aid, Relief, and Economic Security) Act. A part of this legislation applies specifically to our VA Loan holders. If you are among the many who’ve stopped receiving an income your first step should be to call your mortgage servicer. That’s the place where your payments are sent.

The CARES Act directs that if you’re experiencing financial difficulty due to the Virus you will be granted forbearance for up to 180 days. If your financial condition has not improved at the end of that period you have an option to extend another 180 days. In addition you will not be charged any penalties or reported to credit bureaus. Even if you qualify, be very careful.

We have heard of lenders, as part of the forbearance agreement, requiring all delayed payments be rolled into a lump sum or balloon payment at the end of the forbearance period. Lenders, of course, are urging borrowers to make regular mortgage payments no matter what.

This, as you might imagine, is not making lenders happy. We may expect more strict underwriting of loans as a result. Borrowers who still collect paychecks are in a much better position to acquire a VA loan during these unusual times.

(Almost) Free Money Found Here!

Thu, 05 Mar 2020 22:43:55 GMT

(Almost) Free Money Found Here!

Blown away! That is the best descriptor of our feelings when we were able to lock in a V.A. home loan mortgage rate BELOW 3%. Of course, rates vary day to day. No, correct that, rates vary hour by hour.

You’ve no doubt been hearing about the wild swings in the stock market but less attention is given to what has the most impact on a V.A. mortgage rate-the bond market. We’re not going to crawl too deeply into the weeds here but suffice it to say, when the 10-year bond rates takes a dive, generally speaking, V.A. loan rates follow. That’s what’s been happening recently.

We are thrilled to be able to provide Minnesota (and other states) veterans home loan rates never seen before. We are in a very sweet spot for you to take advantage of these rates and put money in your pocket instead of paying a financial institution.

While veteran home buyers are benefiting from this very rare scenario of basement bottom buy rates, so too can veterans who already have a V.A. mortgage. Refinance rates may not be as low as home purchase rates but they too are way, way down. At VALoansMN and Luminate Home Loans we can demonstrate how you may be able to save some serious dollars by refinancing your V.A. home loan.

Along with all this stunningly good news comes a precaution. As mentioned above, V.A. mortgage rates change hour by hour. Will you be able to get a loan around 3%? We, and no one else, can answer that question without some due diligence. There’s only one sure way to find out. Call Brad at 612-240-9922 and let’s unlock your possibilities.

What Just Happened?!

Wed, 05 Feb 2020 22:43:30 GMT

What Just Happened?!

Let’s start with a big bite of optimism: In February this economy was on fire. Job creation smashed estimates with 175,000 jobs created in a single month. No estimate saw that coming. The stock market was reaching all time highs. Interest rates were at the historic lows we’ve witnessed for months and months. What a great time to obtain a VA loan. Then, everything changed.

Along comes the Coronavirus from China. Chinese authorities say their first detection was early December but there’s evidence it was occurring as early as October. Thousands of travelers were flying in and out of that infected region daily. President Trump halted travel from China to the U.S. in late January. The first person to person transmission of the virus in the U.S. wouldn’t be recorded until February 23rd. This is the catalyst rocking the mortgage world.

Mortgage rates have been historically tied to the rates of the 10-year U.S. bond. Even that has changed. As the Federal Open Market Committee (commonly referred to as the “Fed”) was cutting the Federal Funds Rate the rate on the 10-year was falling also. But, not mortgage rates. For a number of in-the-weeds factors we saw mortgage rates leap upwards. We’ve also seen lenders tightening requirements. Mortgages have become a bit harder to get.

We have for months on end been urging you to take advantage of VALoansMN extremely low rates. We’ve even urged you to tell friends and family that NOW was the time to act because the low rates can’t last forever. It is disappointing to tell you but, at least for the time being, that window of opportunity may have closed. Notice we said MAY have closed.

VALoansMN Loan Officer Brad Christensen is still able to help you. Now more than ever you need a local, reputable loan officer to guide you through this most turbulent time. Rates are not as low as they were just weeks ago. Loan requirements are a bit tougher also. But, let us assure you, we are here to help you achieve your home finance goals. CALL US TODAY and let us give you an accurate reading of your opportunities to buy or refinance a home with a VA Loan.

We started with that big bite of optimism so let us end with it as well. Financial king pins believe the various stimulus packages being rolled out in the economy are likely to bring back that booming state of affairs we had prior to the virus attack in the U.S. They believe, and we want to believe also, that the come back will take a much shorter time than what some prognosticators believe.

Ramping Up in the New Year

Sun, 05 Jan 2020 21:21:58 GMT

Ramping Up in the New Year

The roaring economy steamrolled into America a few years back as some of the know-it-all poo-bahs were predicting yet another recession. Even a few months ago the “experts” said we’re in for a recession. This may be 2020 but we can assure you the vision of the pundit class is not 20/20.

Jobs, jobs, jobs and, better for us, low rates, low rates, low rates! Veterans wanting to buy or refinance homes have hit a sweet spot in the market place. A decade ago rates had dropped to 5 percent and the rush to refinance was on. Now those same mortgages can be refinanced at incredible (and hassle free) savings. That’s one of the several outstanding features of your V.A. loan, it can be refinanced with only a fraction of the documentation of other mortgages.

Readers of our blog have noticed time and again we’ve urged Veterans to take advantage of our historic low interest rates. Despite the roaring economy we’re not seeing inflation to match as has been the case in the past. Usually when an economy is on fire the blaze gets out of hand and starts burning up the benefits with higher prices and higher interest rates. That is not happening now. You can still call us at VALoansMN, talk to Brad about your current mortgage and chances are we can save you thousands even if your mortgage is but a few years old.

There was a time not to many years ago when homeowners would make extra effort to pay off the mortgage. Why pay all that interest if you have the ability to pay down the principal? In today’s economy that may not make sense. Before we pursue this line of thinking we want to be very clear; you should always turn to professional financial advisors when it comes to your money and investing. We are not CPAs or Certified Financial Planners and you should check with that professional class when considering your own situation. But sometimes the facts are as plain as the nose on your face.

Here’s the scenario. Veterans Mary and John have a $200,000 V.A. loan at 3.75% on their home. They also have sufficient income to make more than the minimum monthly payment on this 30 year loan. But they’re also saving for future needs such as education for the kids or their own retirement. Their financial advisor has placed their savings in funds that give them an annual return of 6% or better. The question before them is should they pay down their mortgage with a 3.75% rate or take that extra cash and invest it in their savings which is giving them 6% (or more)? What would you do?

With the economy roaring into the new decade it may be time for you to take advantage of what we offer at VALoansMN. Call Brad at 612-240-9922 and see how you may be able to take advantage of this economic sweet spot with low loan rates.