The rising Mortgage interests rates we’re seeing in mid-2022 mean that its more important now than ever for Veterans to shop their mortgage around to get the best VA Mortgage. There are still some bad actors out there taking advantage of veterans and charging high interest rates and very high fees.

As we’ve mentioned recently, the rising rates have slowed the number of mortgage loan applications coming in to all lenders. Some lenders start chasing profits. The number one way to try and make up for lost revenue is to offer a low mortgage rate but charge really high fees to get that rate, or simply charge a very high interest rate and hope the veteran doesn’t shop that mortgage around.

To prove it, our owner, Ben Lucero, got a letter from a VA lender in the mail a few days ago, offering a 2.99% interest rate. However, in the fine print, it discloses it’s only for a 10-year term, the minimum loan amount is $350,000– and listen to this, the offer had 3 discounts points attached to it. In this scenario, 3 discount points is an extra cost of $10,500 just to buy the rate down! If you include the other closing costs, the veteran would pay about $17,000 in closing costs to take this loan.

Ben also talked with a veteran who said he got an offer on a purchase loan from another lender and asked if we would send him an offer. He called us back and said our VA loan offer was almost 3/4 of a percent lower than the rate he was offered by his lender. He took our offer.

So, veterans, if you are looking to purchase or refinance, please shop that mortgage around and be sure to use your trusted local VA mortgage broker, Indigo Mortgage.

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