With 2020 right around the corner, big changes are coming to the world of home loans. These changes are specifically concerning VA loans. Here are a few things to come to New Mexico home buyers in the new year.
Starting January 1st, the VA will classify all loan amounts the same. In other words, there will be no jumbo pricing on larger loan amounts. All VA loans will have the same rate. This is a huge opportunity for Veterans who have home loans above $484,150 and also have a higher interest rate associated with the jumbo loan. These Veterans now qualify for a streamline refinance. Streamline refinances are quick and easy, as they do not require an appraisal nor income verification. This will provide them with a much lower rate, even as low as 3%. We urge all current homeowners with a VA loan to inquire about refinancing.
Veterans looking to purchase more expensive homes can now also utilize their VA benefit for 100% financing and still take advantage of the lower rates. We just advise all Veterans to be leery of some of the deals out there. If a low rate seems too good to be true, it may be. If you receive communication regarding rates below 3%, it is likely the offer is not legitimate. These also often come with a huge buy down point, or the rates end up being adjustable. These lenders are rarely up front, and borrowers may find hidden fees or strings attached.
These are just a few changes you may see in the upcoming year. If you are shopping for a home mortgage in New Mexico, or are looking to refinance, reach out to us and keep things local. No one cares more than the Indigo Mortgage team!