#102 Monday Morning Mortage Tip: Justin Froiland with Fairway Mortgage

Posted by Shane Andersen on Tuesday, October 1st, 2019 at 7:33am.

Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase. 

This morning I sat down with Justin Froiland from Fairway Mortgage. Listen as Justin explains the qualifications for a VA Interest Rate Reduction Refinance Loan You can reach Justin at 605.695.1429 or justin.froiland@fairwaymc.com.  His office is located at 412 5th St., Brookings SD 57006 or on the web at www.BrookingsMortgage.com 

VA Interest Rate Reduction Refinance Loan

- Good morning. 8:15 on the dot. It's Monday morning and it's our Monday Morning Mortgage Tip. And beside me is Justin Froiland, from Fairway Mortgage, and we're just gonna jump right into it, well, actually, gotta do my spiel here real quick. As you guys jump on, please let us know, give us a heart, give us a thumbs up. Let us know that you're coming on. And if you have questions for us we'll try to see if we can answer them, depending on time frame. Otherwise we'll move it to our next episode. So, with that being said, Justin, what is the tip today?

- Yes, Shane, today I wanted to spend a little bit of time talking about a VA IRRRL, which is an Interest Rate Reduction Refinance Loan. It's kind of a mouthful.

- Where's Earl?

- Right? Right? And the reason I want to talk about it is because I feel like there's not a lot of people out there talking about it, but it's a very awesome benefit for our veterans out there. And essentially what it is, it's a very, very low cost refinance. And so it can be done quite quickly, because there's no appraisal required. You don't even actually have to credit-qualify for this loan. And so, maybe your credit's dropped a little bit since you did your original loan, you still may qualify for this loan because all the VA looks at when they look at approving these is if your interest rate is going down far enough. And they actually set a stipulation out there, there's got to be a 36-month recoupment period. So what that means is if you don't recoup all of your costs associated with the loan within three years, they will not allow you to do this loan. And so, it's really a cool thing out there. The VA funding fee, that if you're a veteran you're probably familiar with what that is, that is actually drastically reduced on these loans as well. It drops down to about a half of a percent, is what it ends up being. And so that helps save some money right there, as well.

- So is this a refi then?

- Right. Exactly. Yep, yep, it's a refi, whereas you or I would be doing a refinance on a conventional loan type situation, the veteran can basically just refi from one VA loan into another VA loan and their payment has to go down by a certain amount, and they have to fall within that 36-month recoupment period.

- So do they have to have the VA loan to begin with or could they be in a conventional and then switch?

- Nope, they'd have to be in the VA loan to begin with.

- And maybe you said that, but...

- Yep.

- Okay. Wow.

- But yeah, so it's a very nice benefit out there. Rates are still low with where they're at, the last two and a half weeks or so we've seen a little bit of fluctuation, a little bit of volatility. They've gone up and down a little bit, but overall they're still in pretty good shape, and so that's a very, very good program for the veterans out there.

- Nice, yeah, I'm glad you brought that up. I hadn't heard of that. So, and yeah, if you're a veteran out there with something, with a VA loan, come in and talk with Justin. Obviously there's a lot more to that, probably, but it could be a good program for you. So love that tip. That's awesome.

- Yep. And one of the other benefits that I forgot to mention is that unlike when you bought your house, where you had to provide a whole bunch of documentation, a vial of blood from your first-born, and just all sorts of stuff, we don't need any of that. It's pretty much a no documentation loan. And so it's pretty seamless.

- Seamless. Perfect. All right. Great tip, Justin. Thank you for that, and everybody, thanks again for watching. This is episode 102, believe it or not.

- There you go.

- So thanks for all your-- you were episode one.

- Episode one, yes.

- You were number one.

- Yep, yep, it's been a long time ago, so it's awesome.

- It was a long time ago. So thanks for continuing to do this.

- Most definitely.

- Appreciate that. But if you have questions for Justin, let him know, his information will be on the top, on the bottom, on the sides, wherever your device allows you to see that. And of course, you can reach out to me anytime too and we'd be happy to answer a question on our next episode. So thanks again for watching. That's this week's Monday Morning Mortgage Tip. We'll be back next Monday, guys. Have a great week. See ya.

- Thanks, guys.

 

Thinking of selling and/or moving to Brookings, Volga, or any surrounding areas? Got questions? I’m here to help! Visit BrookingsHomeTeam.com for more details!

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