Jon - Trident Home Loans

We’ve been at 2.75 for that scenario for a couple weeks now. It’s not the rate, it’s the breakeven point determined by the closing costs and the funding fee divided by the monthly saving that determines if it’s worth it or not. If you’re not going to own the house much longer than the breakeven then it wouldn’t make sense. Just need to run the numbers and see if it makes sense or not. Every scenario is a little different based on where you live, if you have VA disability, and the loan amount. Jon

My pleasure! Amy and NBKC are great too...not Trident great but I’d rather you use them over some bank who can’t even get the VA funding fee quoted right😉 Jon

It's 1M with zero down 1-1.5M 10% down 1.5-2M 15% down

Million $ question. Mortgage Backed Securities investors on Wall Street set the pricing and banks/mortgage companies originate based on what each rate pays then add their overhead/profit margin. Big banks can be greedy because of name brand recognition plus they have higher overhead, but MBS pay the same to everyone. Some days investors are willing to pay more and some days they are willing to take less all based on demand, risk, cash available, and other investment opportunities. If the demand is there why would you take a lower rate of return? On the other end if you can make more money elsewhere or no one is buying then MBSs have to pay a higher rate of return to get buyers. There is no crystal ball, but I can tell you demand is very high at current rates/pricing. The future of rates is tied to what the broader economy and Wall Street will look like over the next couple years. Lots of opinions and opportunities out there right now. Jon

Rates are at the bottom again and the economy is worse than before. I think rates will stay low for a while. Maybe small swings here and there but overall they should stay low to encourage the economic recovery we need to get back to normal. Just hit me up towards the end of the year. Jon

I think rates will stay low for a while. To do an IRRRL you can't close until 210 days after the 1st payment is made on the old loan, your rate has to go down by at least .5%, your new principle and interest can't exceed your old P&I (only applicable usually if you want to do a reduced term..30yr to 15yr), and the break even point can't be longer than 36 months. We can start the loan 45 days or so before the 210 day earliest closing date. Jon

I agree. Biggest con to refi-ing to a conventional is the potential increase in interest rate and PMI if you don't have 20% equity. If it's a rental property than the rates are much worse and you need 25% equity in it to get the lowest conventional investment rate. If you're thinking you want to switch to a conventional definitely do it well prior to moving so you can do it as a primary residence. FYI...VA IRRRL rates are really good...like pre-COVID good at 2.75% right now with little to no points. If you missed the last refi boom and have a VA at 3.25% or higher, 680+ credit score, primary residence and loan below 510,400 then now is you chance to get a great deal. Let me know. Jon 850-377-1114 jk@mythl.com

Just email me and I’ll add you to my watch list. Think we’ve been able to get everyone taken care of as long as we know what you’re looking for. Sometimes we can do it immediately and sometimes we have to wait for the market to improve but we’re always watching for good deals. Jon jk@mythl.com

Thanks to both of you guys! Enjoy the savings/extra cash. Enjoyed working with you both and feel free to reach out if you need anything in the future. I definitely hear a lot of different perspectives on investing, down payments, cash outs, rentals, etc. Seems like everyone has different risk levels and long term goals. Some guys want to be debt free and some guys want to be highly leverage so they can generate more income from it. It's odd offering mortgage/investment advice when asked because everyone has a different perceptive on what "right" looks like. I just try to understand what strategy that person is operating on and then offer solutions to get them to their goal. The harder ones are the guys with no strategy. Those convos turn into a pro/cons of every option under the moon. It's all good though. I learn a lot from you guys and enjoy the different perspectives. Jon

Not that I’ve ever seen or heard of, but I’m not a legal expert. Loans aren’t held by banks anymore...they are held in mortgage backed securities. Banks and servicers just collect the payments and do the customer interface portion.

I'd add that if you go 15yr it's a mandatory payment that you could destroy your credit over or end up losing the house if any unexpected life event happened. It also drives up your debt-to-income ratio to a high level that could keep you from getting a loan on an investment property or second home if you ever go that direction. Seen a few guys not qualify for a new purchase because they had a 15yr. I have a 15yr on my house so I'm not anti 15yrs...just something to consider.

Glad we got you hooked up again! Thanks for all the repeat business! All great points about a 30yr vs 15yr. Thanks for trusting us over your current servicer with the refi! Only one investor in the country allows escrow waivers on VA loans. Unfortunately their rates/pricing are terrible right now so we're not using them, but when they come back its a great option. A lot of people have terrible stories about their escrow account being either underfunded or overfunded. Lots of escrow drama out there. It'd be awesome if more investors got on board and allowed VA escrow waivers. Jon

15yrs are way worse than 30yrs right now on VAs. Looking in the 4s to get a no point 15yr. Everyone is just doing 30yrs and paying it like a 15yr. Other option is you can contact your current mortgage servicer and see what they'll do for you. Seen some offering good rates to guys to keep them on their current repayment schedule. Servicers don't want to lose loans when they are refi'ed because they paid to buy them and liquidity is already tight. Streamlines are the same rates as purchase unless we don't lock and just float the rate. We've had some good success registering the loan, underwriting it and then locking it at the end right before closing to avoid the hedge cost of locking money for 30-45 days. We've got guys as low as 2.75% without points doing this but it all depends on what rates look like at the end of underwriting when we lock it. Good thing is it's no risk, no cost to give it a go and if we don't like the rate we can just leave it hanging out there until we see the good short term lock pricing. Then we lock and close immediately. That's how we've got the best deals for guys on streamlines. That strategy doesn't work good on purchases because there is a fixed closing date and buyers can't just hold off locking cause they have to close. Jon

In general non-jumbo VAs (Below 510,400) have been averaging in the 3.125-3.25% range with no discount points and no lender fees, but that could change at any point. Most lenders are charging points or origination fees to get decent VA rates from what I’ve seen. Jumbos are still all over the place so hard to give a trend. Jon

You're welcome and glad we could help! Great to work with you again! Enjoy the new assignment/house! Jon 850-377-1114 jk@mythl.com

My pleasure! Happy to share any gouge I have. One of our insiders in the capital market world told us yesterday that Ginnie Mae (the Fannie Mae and Feddie Mac of Gov Loans) will be announcing (as early as this Friday) the details of their assistance program to help with the cash crunch big mortgage servicers are under right now with VA, FHA, and USDA loans. This will protect big government loan portfolios and bring government mortgage investors back to the table. Expecting VA rates back to business as usual as early as next week. Our owner (Marty) is expecting to see low rates return in the not to distant future and stick around for the next 3-6 months. No crystal ball but definitely encouraging news considering all the PCSs coming up soon. We'll keep you posted. Jon PS: If you missed the refi boom and want to be in the cue for a VA IRRRL (assuming rates go down) make sure you have an app in, authorize us to pull credit, and let me know (jk@mythl.com) what your target rate is. We see rate dips that no consumer will ever see/time right. Never saw below 2.75%, 2.875% was common for a while, and 3-3.125% was pretty standard on non-jumbos. 3-3.25% on jumbos above $510,400 was standard, but saw some dips before to 2.875-2.99%. App link: https://www.blink.mortgage/app/signup/p/tridenthomeloans/jonathankulak

You're welcome and thanks for the nice words/repeat business! Happy we helped save you some money so you can get some more flying time in! Underwriting across the industry is tightening up due to rising unemployment rates. There is usually one verification of employment done...now there are three. VA rates are also higher for the most part than conventional rates for the first time ever as well (variety of reasons for this, but mostly because they are zero down loans without any cash reserves required so thus more risky in a crisis). We can still get low VA rates but not in states with lock downs...we have to start those loans as floating rates and then we can't lock them until they are cleared to close. Conventionals can be locked in the low 3s in every state. These are weird times. Jon Another good article explaining the chaos: https://mbshighway.com/mortgage-crisis.html

Nope, once you're locked you're protected as long as the lock doesn't expire. Call if you have any concerns. Jon

Thanks man! We definitely appreciate the loyalty and we always reward our prior clients with little incentives. Mortgage market is back to craziness again because of the mortgage relief aspects of the bailout bill and how that will impact mortgage servicers. Investors aren't buying mortgage backed securities except the Fed so rates spiked. Hopefully it'll settle down again in the next couple weeks. Definitely not the time to lock any purchases or refinances. Jon

Just a quick update on the mortgage market and rates. Still a lot of craziness out there right now, but the Fed is doing everything they can to help stabilize things. The Fed rate cuts don't do anything for mortgages but the unlimited mortgage backed securities purchasing they are going to do will help over time. Been locking non-jumbo (below $510,400) VAs in the 3-3.25% range without points or lender fees. Not see any more sub 3% rates, but also not seeing the crazy spikes like last week. Looking forward to help you guys with PCS purchases once the travel ban is lifted. Jon 850-377-1114 jk@mythl.com

Thanks! Glad we got you in before the zombies took over the country! Hopefully rates will come back down once this settles down. We'll definitely get the best deal we can for everyone no matter what the market is doing. Jon

My pleasure and thank you! No dumb questions with us...we wouldn't be in business long as a word of mouth only business if we don't give great rates and service. I'll share your nice words with my processors...they are the real brains behind the operation. Enjoyed working with you and let me know if you need anything in the future. Jon 850-377-1114 jk@mythl.com

Thanks! Glad we did good by you! Let me know if you need anything in the future! Pleasure working with you. FYSA not the time to refi or buy right now if you can avoid it. Rates are jumping by .375-.5% overnight. We’re expecting things to settle but right now just making a list of potential refi’s and telling anyone buying to drag out settlement so we can look for dips to lock. Someone told me Today Navy Fed said 6 months to settle and the big boys are quotes up to 4.5%. Stay safe out there and watch out for the swarms of zombies. We’re running Trident out of a broken down school bus in the woods of WV surrounded by land mines. Jon

Thanks man! Always nice to help out an AF coworker! Don't feel I did anything special...just did what I'd want a friend to do for me. Glad we scored a great rate for you...I'm actually shocked we got it. This has been the craziest week ever...Mon 2.875, Tues 3.375, Wed 3.25, Thur, 2.75-2.875, Fri 3.49 on 30yr fixed VAs. Never seen swings like this before. I'm telling people if you don't need to lock (closing within 30 days) that it's best to sit on your hands right now. Today for the first time ever I saw VA and Conventional rate match...usually a .5%+ spread. This market is all over the place. Refi's are up 479% year over year nationally which is killing the mortgage industry/Wall Street. Seems that rates are artificially high because Wall Street is trying to kill the demand. Refi's are dead for now. Sorry definitely no crystal ball on where this is going. We're still the lowest in the country but what that looks like changes everyday. Hopefully we'll start seeing the market settle in the next couple weeks. Jon

Most lenders tell you what you want to hear until you see it on paper. The worst one I was see seeing last week was Navy Fed advertising 2.5% on a 30yr VA. Well when you read the fine print they were charging .5% in points and 1% in an origination fee. We were at 2.75 with none of that. So on a 400K home you'd pay Navy Fed 3K to save $52 a month which is a 58 payment break even point compared to 2.75% no points no fees and that's not including the extra interest you pay on that if you roll it in. Great if you're holding the house for 30yrs but that's the exception not the norm these days especially for military folks. We always quote no points and no fees...aka no tricks. If you want to buy the rate down that's up to you but usually I show people the break even and they make a more educated decision. Beware of the "sexy" rate advertisements...likely there is a catch. FYI rates aren't even close to 2.75% anymore...the refi demand is up 479% nationally over last year and the mortgage market is flooded. Yesterday we saw rates jump .25% because Wall Street is trying to slow the bleeding. If you're late to the party and still want to refi I'd wait a couple weeks for the dust to settle and in theory the wall will come down a little again so people can still get good deals. We were doing better deals back in Jan before the media got a hold of the refi story. Jon