Virginia Refinance Loans, Relocation Loans

By Michelle E. Palmer, Providence Mortgage, VA

With rates at historic lows, refinancing is an excellent option. Many clients are taking advantage of 30 year fixed rates if they plan on staying in their home for an extended period or if they are not planning to live in Virginia for very loan many are taking advantage of interest only loans for shorter periods of time. The shorter the loan terms the lower the interest rate. There are also interest only options that make payments much more manageable while you take advantage of the increase in home prices and earn equity before you move or relocate to another part of the country.

One of the most popular products for our refinance clients, purchase clients or investors is the 1 or 3 month MTA. This is based on the 12- month treasury index and unlike the labor loans that can vary more on a monthly basis; the MTA is based on the last 12 months of the treasury index. So, though it can change monthly as well it changes on the last 12-month average and is a more gradual change.

This product also offers principle and interest rates as low as 1% (this is not a mistake- one percent), making monthly payments very manageable. Investors can often turn a negative rental investment into a positive monthly return. For clients that are relocating, we offer the same options as mentioned above and some others that may help with the stress of selling their current home and the tight time frame of moving in to their new home.

To assist in qualifying with their current mortgage payment and the new home payment we have several options: a no documentation loan, a full documentation loan with no income documents required (so we can state the income with no increase to the interest rate), we can do a stated income loan, we can accept a rental agreement and one that allows you to use the equity in your current home while you wait for it to sell is a bridge loan. This loan will allow you to take up to 90% of the equity of your home out while it is up for sale to put down on your new home. It will even give you up to 4 full months to sell your property.

Each client has a unique and equally important home scenario. We will look at each one individually and mutually agree on the best option for them.