VA Home Loan RatesAlways Demand Good Faith Estimates VA Home Loan Rates, When You Are Shopping For VA Loan Interest Rates Ask About Loan Fees... Because Some Lenders Like to Over Charge if They Can Getaway With It...
Learn How to Avoid Paying Points on Real Estate Loans VA loan rates float based on what the Federal 10 year bond rate is. The spread between the bond rate and the real estate loan rate is around .05% to .075% higher than the bond. Because VA rates are not fixed by law, real estate lenders have a bad habit of playing games with borrowers. When You Are Shopping For VA Home Loan Rates Ask About Loan Fees... Because some lenders like to over charge if they can getaway with it. One of the tricks lenders use is to publish rates for 15 year loans, but not tell the borrower It's a 15 Year Loan. For additional information check the following pages: Lenders, mortgage brokers and loan officers can make a lot of commission by marking-up interest rates and earning yield spreads. 
Yield spreads are kick-backs investors pay for loans, because the interest rates are more than the "Par" lending rate.Starting Jan. 1, 2010 all real estate lenders nationwide must provide borrowers a "good faith estimates" (GFE) disclosing loan fees and settlement charges. Under the new guidelines issued by the Department of Housing and Urban Development, the estimates must be accurate. The new "GFE" guidelines were supposed to stop low balling rates and bait-and-switch tactics used by many lenders to increase loan fees.
The Bad News is the lenders have found a way around the guidelines.
If you Do Not have a home under real estate contract they can give you a Work Sheet and put any numbers on it they please. If you apply for a VA home loan demand a Good-Faith-Estimate. • If your loan officer only provides a Work Sheet be on alert. • New GFE requires lender-related fees to be accurate within 10%. • When the charges at settlement exceed the estimates, the lender must pay the difference. For years real estate lenders have been giving Low-Ball estimates to lure real estate loan applicants away from their competitors. The unsuspecting real estate borrower would show-up at the closing table and find that the fees were thousands of dollars higher than the estimates. In the past lenders were not disciplined for giving low-ball estimates and letting shell shocked borrowers learn the truth at the eleventh hour.
_____________________________________________ If you feel that you are getting jerked-around by any lender find a new real estate lender. Yield Spread Premium is a markup on an interest rate so the lender can make more commission. Origination Fees cover the cost of doing business. Normally 1%. Lock-in Period guarantees the rate for 15-day, 30-day, 45-day periods. Discount points equal to 1% of your loan amount.
All of the pages on this site contain useful information so look around. The VA home loan rates can be found on this site. VA HOME LOANS: Something to keep in mind, and that is buying real estate can result in legal problems, so if you need affordable legal assistance or want to do-it-yourself go to Jurisdictionary WAtch the FREE Instructional Videos. Left Side Half Way Down...
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