Interest rates are on the mend!
https://www.afbank.com/business
“Armed Forces Bank is pleased to offer the Paycheck Protection Program loan as part of the CARES stimulus package. The loan program aims to assist small businesses affected by the COVID-19 pandemic”
AFBANK.COM
Armed Forces Bank - Business | Armed Forces Bank
2.875% VA rates, 3.25% conventional.... now is the time to purchase/refinance and lock in these historically low rates.
What does this mean for you? If you want to use your zero-down payment benefit on a home that is priced above your country's conforming loan limit you must wait for the new law to begin. Something to consider is the funding fee rate is higher for any subsequent use, unless you are exempt from paying the funding fee. Although the Servicemember in this example will save nearly $30,000 in out-of-pocket costs upfront at closing after January 1st, the Servicemember will not have any equity in the home at closing. Therefore, if you can afford a down payment at closing, you could potentially save tens of thousands of dollars in fees up front, while building equity in your home and lowering your monthly mortgage payment.
Veterans in receipt of disability compensation at the time of closing may be exempt from paying the VA Funding Fee. Additionally, if you had a disability compensation claim pending at the time of loan closing and were later awarded service-connected disability compensation with an effective date retroactive to a date prior to the date of loan closing, you may be entitled to a refund of the VA Funding Fee. For more information, visit https://www.benefits.va.gov/homeloans/purchaseco_loan_fee.asp.
BENEFITS.VA.GOV
VA.gov | Veterans Affairs
