VA Refinance Caution: Veterans, Beware of Enticing Offers

October 28, 2024 VA Home Loans mortgage refi,online mortgage lender,refinancing,VA loan,VA refi,veteran loans in new mexico,Veterans

As VA mortgage rates start to drop, veterans across the country are being aggressively targeted by lenders pushing them to refinance. From online offers to mailers and phone calls, veterans with home loans above 6% are inundated with enticing refinance opportunities. While this might seem appealing, we want to offer a word of caution before jumping into the refinance pool.

Why You Should Be Cautious About VA Streamline Refinance Offers

Lenders nationwide are urging veterans to consider a VA streamline refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL). But not all offers are created equal. While some lenders advertise low rates, there are often hidden fees or conditions that make the deal less attractive than it appears.

At Indigo Mortgage, we have seen cases where national lenders offer veterans inflated rates or exorbitant fees in exchange for what looks like a good deal. For example, we recently helped a veteran secure a rate almost a full percentage point lower than what a large national lender was offering—at significantly lower fees.

Common Pitfalls of National Lenders

When dealing with national lenders, veterans should be aware of the following pitfalls:

Low rates but high fees – Some lenders may promise competitive rates but then attach costly fees to secure those rates.
Higher-than-market rates – Other lenders may offer rates above what the market is currently offering, hoping you won’t shop around.
Pressure tactics – Veterans may face high-pressure sales techniques that push them to act quickly without fully understanding the terms of the loan.

What to Know About VA Streamline Loans

A VA streamline refinance can be a smart financial move as rates drop, especially since these loans do not require an appraisal or income verification. However, it’s crucial that veterans shop around to ensure they’re getting the best deal. With the VA streamline process being relatively simple, it can be tempting to go with the first lender offering a lower rate, but taking the time to compare options could save you thousands in the long run.

Trust Your Local VA Mortgage Experts

Veterans should always include trusted local mortgage companies like Indigo Mortgage in their search. As a local broker, we are committed to offering the best rates and fees without the hidden costs or high-pressure tactics common with some national lenders. Plus, we live and work in your community, so we are here to support you every step of the way.