The data, published on Monday, shows that older vintage mortgages (loans originated before 2010) accounted for under 9% of the total refinanced during the Covid-19 refi boom. This contrasts with nearly a third of mortgages refinanced from 2015 and later vintages.
As it makes sense to refinance if the balance is higher, less than 10% of the mortgages with balances below $100,000 outstanding as of the first quarter of 2020 were refinanced, compared to half of those with balances between $400,000 and $500,000.
When broken down by investor type, 38% of U.S. Department of Veteran Affairs mortgages outstanding as of the first quarter of 2020 were refinanced by the end of 2021, compared to 25% of Fannie Mae and Freddie Macmortgage loans and 22% of Federal Housing Administration mortgages.
According to the New York Fed researchers, the refi boom will have impacts for decades.
About 64% of the refis were for borrowers to get better rates, which resulted in an average payment reduction of $220. Nine million borrowers refinanced their loans without equity extraction, with an aggregate decrease of $24 billion annually.
In addition, five million borrowers extracted $430 billion of home equity through cash-out refis. The average amount cashed out was $82,000, and the average monthly payment increased by $150.
“The mortgage refinancing boom is over, but its impact will be seen for decades to come,” Andrew Haughwout, director of Household and Public Policy Research at the New York Fed, said in a statement.
“As a result of significant equity drawdowns, mortgage borrowers reduced their annual payments by tens of billions of dollars, providing additional funding for spending or pay downs in other debt categories,” Haughwout added.
According to the researchers, the 2020-2021 refi boom differed from the refi booms in 2003 and 2013 for three reasons: Interest rates were historically low; home equity was at an all-time high leading to the pandemic; and the rebound in rates was historically steep.
In fact, when the market turned, the 30-year mortgage rates rose by 400 basis points, climbing from a historically low rate of 2.68% in December 2020 to 6.90% in October 2022. Such an increase had not been seen since early 1980, per Freddie Mac’s estimates.
And, the mortgage market is still recovering.
The New York Fed’s Center for Microeconomic Data shows in its Quarterly Report on Household Debt and Credit that mortgage originations – measured as appearances of new mortgages on consumer credit reports – dropped in Q1 2023 to $324 billion.
That’s the lowest level seen since Q2 2014, which was an unusually low quarter due to the “taper tantrum.”
Meanwhile, the pace of equity extraction halted when mortgage rates began climbing. Quarterly equity extraction volumes were near historic lows in the first quarter of 2023, mainly as a share of disposable personal income, researchers said.
“Owners now looking to move will face increased borrowing costs and higher prices, with current home prices being more than 36% higher than they had been pre-pandemic,” the researchers concluded. “The improved cash flow generated by the recent refinance boom will potentially provide significant support for future consumption.”
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How many times have you thought about how much FI would it take to retire?
It’s a question that can be frustrating, especially since the answer is different for everyone.
What if there was an easy way to calculate your personal FI number and find out what kind of portfolio you need based on your spending habits? That’s where this handy calculator comes in!
Calculating your FI number is not as difficult as it sounds.
This is an important personal finance number to know.
If you desire to do something else or are just looking forward to retirement, you need to know how much money you need!
What is FI number?
FI number is the amount of money needed to retire.
It can be calculated using your salary, interest rate, and the time period in which you need to save for retirement.
The 4% figure is a reasonable place to start. The 4% rule is a conservative estimate, with the expectation that Social Security will play a larger role in retirement income.
Why Choose Financial independence?
Financial Independence, or “FI”, is a term used to describe the state of not needing to work for a living because your passive income from investments or savings can cover your living expenses.
It doesn’t mean you have to stop working altogether, it just means you’re no longer tied down by the need to earn a certain amount of money each month.
FI is an attractive proposition for many people because it allows them the freedom and flexibility to pursue their passions or hobbies without having to worry about financial constraints. And if you have money saved up, you can live comfortably off your savings or investments!
How to calculate your FI number?
There are a few different ways to calculate your FI number. The easiest way is to use an online calculator. This will give you a ballpark estimate of what you need to save in order to achieve financial independence.
Option #1 – Using Yearly Spending
One way to calculate your FI number is by multiplying your annual spending by 25. This will give you the amount you need in savings to have 25 times your annual spending available each year without having to touch the principal.
FI Number = yearly spending * 25
For example, if you spend $50000 a year, your FI number would be $1,250,000.
Option #2 – Using a Safe Withdrawal Rate of 4%
Another way to calculate your FI number is by using the safe withdrawal rate of 4%. In fact, many studies believe that 4% is the too old way of thinking and 3.3% is a better safe withdrawal rate (SWR).
You can calculate either way. If you prefer to pull more money out at retirement, then stick with 4%.
FI Number = yearly spending / Safe Withdrawal Rate
For example, if you spend $50000 a year and choose a 4% Safe withdrawal rate, your FI number would be $1,250,000.
Using a 3% safe withdrawal rate, your FI number would be $1,666,666.
The Financial Independence Formula
Do you know your FI number?
It’s a question people are often too embarrassed to ask, but if you don’t have an idea of what it is or where it comes from, you might be spending too much of your money.
Let’s start with the basics and work our way up to where we are today in terms of financial independence!
Calculate Your Spending
In order to calculate your spending, you need to know how much money you spend in a year. To do this, simply multiply your monthly spending by 12. This will give you an estimate of how much money you spend on an annual basis.
It’s important to have a detailed zero based budget before calculating your Financial Independence Formula. This way, you can be sure that you are including all of your regular expenses (and irregular expenses) in your calculations.
The FI Formula is based on conservative retirement calculations, so it’s important to include all of your regular expenses in the formula. The more accurate your figures are, the better idea you’ll have of how much money you’ll need for retirement.
Find Your FI Number
In order to achieve financial independence, you need to find your FI number.
This is determined by two factors: spending and withdrawal rate. The safe withdrawal rate (SWR) determines how much money you are able to withdraw each year without running out of savings in your lifetime. You divide your current spending by SWR to find out how much wealth you need in order to reach a certain financial target.
FI Number = yearly spending / Safe Withdrawal Rate
Everyone will have different FI numbs.
Determine Years to Financial Independence
The Financial Independence Formula may help estimate how much time it will take to reach financial independence. The formula is only a rough estimate, and you must adjust it as needed for more accurate calculations for your own savings plan.
The Financial Independence Formula factors in how much you need to save each year to become financially independent.
The goal of the Financial Independence Formula is to achieve financial independence before the typical retirement age of 45.
Years to FI = (FI Number – Amount Already Saved) / Yearly Saving
Using the example above, we calculated your FI number to be $1.25 million. You have already saved $450,000 and currently saving $25000 a year.
32 Years to FI = (1250000 – 450000) / 25000
However, if you increase your savings rate to $80000, then
10 Years to FI = (1250000 – 450000) / 80000
As you can tell, the more you are able to save and invest, the quicker you will reach FI.
For the amount already saved, you need to use the amount saved in retirement plans as well as any taxable accounts that will fund your lifestyle.
A commonly asked question is… should I include my house value? Honestly, the answer is no – unless part of your FI plan includes selling your house and moving to a lower cost of living area. Then, you would use the difference of your appreciated house value minus the cost of a cheaper home.
How to FI – Create a Plan
One of the most important aspects of actually achieving financial independence is to create an action plan.
Without action, you will be spinning on the same cycle over and over.
So, take an hour and start making your plan.
Step #1 – Figure out Numbers
The first step is figuring out your FI number and how many years away you can be.
There are many ways to make variations on finding your FI number. So, make sure you take into account how many years it will take for you to reach financial independence at your current savings rate.
This is the most important step!
Step #2 – Pick a Realistic Date
This is when most people get motivated when they pick a realistic date to retire early.
Every single decision you make will take you one step closer to your goal.
You are working backward from your “selected” date.
Step #3 – Take Action to Enjoy Life
The hardest step for actually making the decision to FI is to take action.
There are so many factors going into what you need to do once your know your FI number.
You can’t just sit back and do nothing once you know your FI number. You have to follow the steps below on saving and investing to reach financial independence.
For many people, this is choosing to live a frugal green lifestyle while saving money.
How to FI – Saving to Achieve Financial Independence
The FI Number Calculator is a simple tool that helps you calculate how much it will take to reach financial independence when investing in the stock market and using your savings rate as well.
But there are certain steps you must take to be able to save more money to jumpstart your path to financial independence. While many of our money saving challenges will help you, you need to find ways to save more money.
Step #1: Pay Off Debt
When you’re working to achieve Financial Independence, it’s important to address your debt. Paying off debt will help you achieve financial independence faster.
There are two types of debt that are especially important to pay off:
Credit card debt
Student loan debt
Credit card companies have high interest rates, so it’s important to consolidate your credit card debt by using Tally or an equivalent service. This can help you find a lower monthly payment and reduce the amount of time it takes to pay off your debt.
Before seeking to consolidate your credit card debt, make a plan for how you’ll avoid future use of this type of loan!
Debt is a cash flow drain while pursuing Financial Independence.
Step #2: Reduce Expenses
There are many ways to reduce expenses and achieve financial independence faster.
One potential area for savings is housing, which can be achieved through refinancing, house hacking, or downsizing.
Other options include trading in your new car for a beater car, scaling back on eating out or cutting back on your streaming services.
Typically those who budget consistently have an easier time reducing their expenses. Using a budget binder will help you find ways to reduce your expenses.
Step #3: Boost your income
This is probably the most important step to be able to increase your saving percentage significantly!
There are many ways to boost your income and save more money.
For example:
Find ways to increase your income from your 9-5 job.
Develop skills or get promoted to earn a better job with higher pay.
Side hustling can help you earn a decent income every month.
Find passive income streams as ways to start earning more money without any effort on your part.
Sell your old stuff on websites like eBay or Amazon for some quick cash infusion into your savings account.
Finding ways to make money fast is important during your FI journey.
You must search for additional sources of income, as they can help you save more and invest more in the future.
Step #4: Invest Money
It’s important to invest money in order to grow your wealth. You can do this automatically by investing through most online brokers.
This way, you’ll avoid making any rash decisions based on fear or greed. Investing consistently is a great way to get an average of 8-12% returns on your investments.
The idea is to save as much as possible and invest in assets that provide a high return on investment. This could include buying stocks, real estate, or other investments that offer long-term stability and growth potential.
Learn how to invest $100 to make $1000 a day.
How to FI – Investing to Reach Financial Independence
Now is a good time to start investing for financial independence.
When you’re ready to invest, it’s important to make sure the investment risk matches what you can handle. A portfolio must match your risk tolerance and long-term goals if you want to achieve financial independence.
We will cover various options on how to use investing to help you reach FI sooner.
Step#1: Make Investments Automatic
When you invest your money automatically, you don’t have to think about it and you can take advantage of dollar-cost averaging.
This means that over time, you’ll get a better price for your investments since you’re buying them in small batches instead of all at once.
In layman’s terms, that means investing a certain amount of money each month.
Step #2: Choose an Index Portfolio
Creating a lazy index portfolio is one of the best ways to invest your money.
This type of portfolio is made up of low-cost index funds or ETFs, which means that you don’t have to worry about timing the market or trying to pick stocks that will outperform the rest.
All you need to do is hold on for the long term and let the market do its thing – in good times and bad.
Step #3: Track Your Progress
As you save and invest your money, it’s important to track your progress so that you can see how well you’re doing and whether or not you’re on track to reach Financial Independence.
This can be done easily by creating a budget and tracking your net worth, both of which will give you great insight into where you are with your finances.
Also, track your liquid net worth separately.
Seeing this progress in black and white is often motivating enough to encourage people to keep saving and investing!
Empower is a comprehensive suite of financial tools that offers a FREE way to track your investment and cash accounts. You can connect all of your accounts so you can see an overview of all of your finances in one place, and the best part is that it’s free! Check out my Empower Review.
Empower Personal Wealth, LLC (“EPW”) compensates Money Bliss for new leads. Money Bliss is not an investment client of Personal Capital Advisors Corporation or Empower Advisory Group, LLC.
FI Number Calculator
The Financial Independence Number Calculator uses a range of variables to calculate the length of time it would take to save for FI. This information can be helpful in developing a savings plan that is tailored specifically to your individual needs.
Here is a simple FI number calculator.
As you can imagine, there are many different scenarios for finding your FI number.
For starters, get a ballpark range and amount you need to save each year to reach your goal. As you get closer to actually, hitting that switch and becoming fully financially independent, then you can refine your FI number.
Remember, while this formula provides a ballpark estimate, more precise results are possible by using a financial independence calculator such as Networthify’s model.
Saving for Retirement or More Savings to Quit work?
If you have some money saved already, the time to reach FI will be shorter than if you are starting from zero. Saving at a high rate is important to reach FI in the shortest time possible; saving at a lower rate or not saving anything makes reaching FI impossible.
Financial Independence is reached by saving a certain amount each year.
This number can vary depending on your unique circumstances, such as income and expenses.
There are a variety of reasons people are pursuing FI – more than likely it is because I hate my job or you want to spend your time doing something else.
The FI Number formula is just a starting point: remember that there are many other variables that could impact your individual savings plans, such as debt load, income, and monthly spending habits.
While using this formula can provide helpful insight into when you might achieve financial independence, it’s important to remember that there is no one-size-fits-all answer.
Every person’s situation is different, so it’s important to tailor your savings plan to your own needs and goals.
Know someone else that needs this, too? Then, please share!!
2021 VA Home Loan Limit: $0 down payment up to $5,000,000* (subject to lender limits) /2 open VA loans at one time $548,250 (Call 877-432-5626 for details).
How to Apply for a VA Home Loan?
This is a quick look at how to apply for a VA home loan in Lawrence County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA mortgage loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Lawrence County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the Lawrence County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in Lawrence County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Pro tip: Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
What is the Median Home Price?
As of February 28, 2021, the median home value for Lawrence County is $69,091. In addition, the median household income for residents of the county is $39,993.
How much are the VA Appraisal Fees?
Single-Family: $500.
Individual Condo: $500.
Manufactured Homes: $550.
2-4 Unit Multi-Family: $550.
Appraisal Turnaround Times: 10 days.
Do I need Flood Insurance?
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
There are some minimal flood hazard areas in Lawrence County, particularly by Lake Charles, Black River, and its attached streams such as Flat Creek.
How do I learn about Property Taxes?
Becky Holder is the Lawrence County tax assessor. Her office can be reached at 315 West Main St. Walnut Ridge, Arkansas, 72476. Additionally, Becky’s office can also be reached by calling 870-886-1135.
As a homeowner, Amendment 79 and Act 142 provide that tax relief to make them eligible to receive up to $350.00 tax credit on the property that is their principal residence. Also, homeowners who are 65 years of age or older or 100% disabled may receive a freeze on their assessed value, so their taxes do not increase over the years. Mobile homeowners are also eligible.
What is the Population?
The county’s population of 16,406 is 95% White, 2% Hispanic, and 1% Black.
Most county residents are between 18 and 65 years old, with 22% under 18 years old and 19% older than 65.
In total, the county has about 6,463 households, with an average of 2.4 people per household.
What are the major cities?
The county has at least 5 large cities and communities, including Walnut Ridge, which serves as the county seat. Some other cities and towns making up this county are Imboden, Hoxie, Black Rock, and Ravenden.
About Lawrence County
Lawrence County, Arkansas farmers produce mostly corn, rice, sorghum, and soybeans. Additionally, other industries contribute to the county’s economy, such as manufacturing, poultry, and cattle.
Regarding education, more than 3,000 students benefit from the academic programs provided in its 10 public schools. Besides, higher education can be achieved at the historic Williams Baptist University, which is now famous for its liberal arts program.
The wide variety of rivers and lakes found in Lawrence County offer excellent outdoor opportunities for entertainment such as kayaking, rafting, and canoeing. Furthermore, in Lake Charles State Park, locals and visitors enjoy fishing, camping, and hiking.
Furthermore, the county offers many historical landmarks to visit, so tourists can benefit from its rich history and culture. Also, one of the most famous and visited annual festivals is the Lawrence County Fair, featuring rodeos, shows, exhibitions, and much more.
Veteran Information
Lawrence County has a veteran population of 1,082.
County Veteran Assistance Information
Lawrence Veteran’s Services Office – 315 West Main Street STE 1, Walnut Ridge, Arkansas 72476.
VA Home Loan Information
For more information about VA Home Loans and how to apply, click here.
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
There are no VA-approved condos available in Lawrence County Arkansas. For more information about the VA condo approval process give us a call at (888)573-4496.
Deciding between a home equity loan vs. refinance? Both options give homeowners the chance to access their home’s valuable equity with the flexibility to use that cash however they please.
Additionally, refinancing allows homeowners to lock in a lower interest rate or change the length of their loan term.
If you’re trying to figure out whether a refinance or a home equity loan is right for you, consider your needs as well as the advantages and risks of both loan options.
What Is a Home Equity Loan?
As a homeowner, you have several options for taking advantage of the built-up equity in your home — one of those being a home equity loan. A home equity loan is a type of loan that allows homeowners to borrow against the equity in their homes.
Lenders typically pay out a home equity loan in a lump sum payment. The biggest advantage of a home equity loan is its flexibility. The funds can be spent on anything from medical bills, home renovations, and even travel.
Since home equity loans are secured by your home, lenders may give a lower interest rate than they would for personal loans or credit cards. However, defaulting on your loan puts you at risk of foreclosure.
How Does a Home Equity Loan Work?
Lender requirements vary, but you generally need:
At least 15% to 20% equity in your home
Good credit
Low debt-to-income ratio
Steady source of income
Once you’re approved for a home equity loan, your lender will give you documents stating the amount you can borrow (up to 85% of the home’s value), the interest rate, and associated fees.
These fees vary from lender to lender, so it’s a good idea to shop around and compare.
After the funds are disbursed, you will need to repay the loan’s principal amount and fixed-rate interest in fixed monthly payments. Depending on the lender, repayment on your home equity loan can be as long as 30 years.
While a shorter term allows you to repay the loan faster, it means higher monthly payments compared to a 30-year term.
What Does It Mean to Refinance?
If you refinance a mortgage, you’re replacing your current loan with a new one, usually with a new principal amount and a different interest rate. There are several reasons why a homeowner would choose to refinance their mortgage, such as lowering their interest rate, shortening the term of the loan, or taking out equity in their home in the form of cash.
Here are two common types of refinancing:
Rate-and-term refinance: This is a type of mortgage refinance that allows homeowners to change the term and interest rate of their current mortgage by replacing it with a new loan. Homeowners generally choose this option if they are looking to lower their interest rate, reduce their monthly payments, change the loan type or change the term length.
Cash-out refinance: With a cash-out refinance, homeowners take out a new mortgage on their home, up to 80% of the value of your home, for more than what is owed. This difference is paid out at closing and can be used on almost anything. However, this new loan is larger and comes with its own terms.
How Does Refinancing Work?
Refinancing a mortgage is similar to the process you went through with your original mortgage. You must apply and qualify for the loan before approval. The lender will assess your financial situation and determine your interest rate based on your risk level.
It’s also important to keep an eye on closing costs, which can range from 2% to 5% of the loan amount.
Let’s say you’re looking to take out some equity in your home and decide to use a cash-out refinance. You purchased a $300,000 house many years ago and took out a mortgage for $200,000. Your current balance with your lender is $100,000.
If the property value remained the same, you would have at least $200,000 in equity.
You could potentially be approved for $225,000 and use $100,000 to pay the remaining principal. This leaves $125,000 in cash to use as you please.
Comparing Home Equity Loan vs. Refinance
If you’re comparing a home equity loan vs. a cash-out refinance, both options allow homeowners to leverage their home equity to borrow more money.
A cash-out refinance replaces an existing loan with a new loan, meaning you only have one loan and one payment to worry about. A home equity loan, also known as a second mortgage, is another loan that must be paid alongside your original mortgage.
Cash-out refinances are also considered first-lien loans, and typically come with lower interest rates. First-lien debt holders are repaid before all other debt holders in the event of a foreclosure or bankruptcy. A higher interest rate on a home equity loan may be offset by lower closing costs.
If you want to take out some equity but you’re stuck deciding between a home equity loan vs. refinance, a cash-out refinance is an excellent option if you can lock in a lower interest rate. A home equity loan may be worth considering if you want to take out a large portion of equity or if you can’t find a lower interest rate when refinancing.
Home Equity Loan vs. Refinance? Ask an Expert at Total Mortgage
When deciding between a home equity loan vs. refinance, both options give homeowners quick access to cash by leveraging their home’s equity. Yet, one option may make more sense than the other depending on your needs and financial situation.
Are you looking to refinance or take out a home equity loan? Consider Total Mortgage for a quick, personalized mortgage experience. We work with borrowers across the country.
As of the end of 2022, nearly 45 million Americans collectively have over $1.7 trillion in student loan debt, and these numbers are growing. If you are one of the millions with some form of student debt, you may have considered student loan consolidation, which allows you to combine all of your student loans into one loan with one monthly payment.
Student Loan Consolidation Explained
Student loan consolidation is designed to combine some or all of your student loans and make repayment more manageable. There are both federal and private options when it comes to consolidating your student loans.
Private Student Loan Consolidation
A private student loan consolidation is when a lender pays off all or some of your student loan debt and creates a new loan, which you will then make payments on. If you consolidate or refinance through a private lender, the new loan will ideally have a lower interest rate and better terms than your previous student loans. With a private lender, you can consolidate both federal and private loans, and this is typically referred to as a student loan refinance.
Consolidating through a private lender, though, means you lose access to federal forgiveness programs, such as income-driven repayment plans. If you plan on using one of these programs now or at some point in the future, it’s best to hold off on consolidating through a private lender.
Federal Student Loan Consolidation
If you are hoping to consolidate federal loans only and want to keep access to federal forgiveness programs, you can consolidate with a Direct Consolidation Loan through the U.S. Department of Education.
Recommended: Types of Federal Student Loans
Consolidating through the federal student loan system doesn’t usually save you money; it simply combines multiple loans into one. Your new interest rate is a weighted average of all your loans’ interest rates, rounded up to the nearest eighth of a percentage point. No application fees are charged for Direct Consolidation Loans, and the loans remain federal loans.
This could be particularly useful for borrowers who are pursuing federal loan forgiveness or who are enrolled in one of the more flexible federal student loan repayment plans, such as an income-driven repayment plan.
As you ask yourself, Should I consolidate my federal student loans? And when should I consolidate my student loans? The answers depend on a number of factors.
Benefits of Consolidating Student Loans
There are a few reasons to consider student loan consolidation either with a Direct Consolidation Loan or refinancing through a private lender.
Simplified Repayment
Whether you choose a Direct Consolidation Loan or choose to refinance through a private lender, your loan repayment should be simplified. Managing multiple student loan payments may increase your chances of missing a payment. If you miss even one payment, you risk your credit score being lowered. Late payments also stay on your credit profile for up to seven years.
Thus, consolidating multiple loans into one can help eliminate the margin of error and may make repayment more manageable.
Fixed Interest Rate
When an applicant is interested in refinancing through a private lender, their interest rate and terms will be based on their credit score, payment history, type of loan they’re seeking, and other financial factors. While requirements may vary by lender, applicants who meet or exceed the lender’s criteria may qualify for better interest rates and terms, thus saving money over the life of the loan. Borrowers can also switch from a variable to a fixed interest rate when refinancing through a private lender.
With federal Direct Loan Consolidation, as mentioned earlier, a borrower’s interest rate is a weighted average of current loan rates rounded up to the nearest one-eighth of a percentage point, which means this doesn’t typically result in savings for the borrower. The borrower does, however, keep their access to federal loan forgiveness programs.
Federal and Private Loans May Qualify
Both federal and private student loans can be refinanced. For a borrower who exclusively has federal loans, a Direct Consolidation Loan may work best, especially for those who plan to take advantage of federal forgiveness or repayment programs. Those who have a combination of federal and private loans can partner with a private lender to refinance.
Flexible Loan Terms
Student loan consolidation allows you to change the duration of your loan. You may currently have a 10-year repayment plan, but when you consolidate or refinance, you might choose to shorten or lengthen the term of your loan. Typically, lengthening the term of your loan will reduce your monthly student loan payment (but add up to more total interest).
Considerations for Student Loan Consolidation
Even though there are benefits of student loan consolidation, there are also drawbacks. Here are a few considerations to be aware of before consolidating student loans.
You Can’t Lower Interest Rates on Federal Student Loans When Consolidating
If you choose the Direct Consolidation Loan, generally you won’t see any savings. Because your new interest rate is a weighted average of your current loans rounded up to the nearest one-eighth of a percentage point, you will probably pay around the same amount you would have paid if you didn’t consolidate. You are, however, condensing multiple monthly payments into one more manageable payment.
If you extend your term, you may see your monthly payment decrease, but your total interest payments will increase.
On the other hand, if borrowers choose to refinance with a private lender, they could end up reducing their interest, thus saving money over the term of the loan. They could also opt to lower monthly payments by extending their term. But as mentioned above, this increases the total amount of interest paid.
Possible Disqualification from Federal Repayment Programs
Refinancing federal student loans with a private lender disqualifies you from federal repayment programs, including the Public Service Loan Forgiveness Program (PSLF) and income-driven repayment plans.
Borrowers will also be disqualified from federal benefits such as forbearance and deferment options, which allow qualifying borrowers to pause payments in the event of financial hardship.
Some private lenders have hardship programs in place, but policies are determined by individual lenders.
Fees May Be Charged With Private Lenders
While there is no application fee for the federal Direct Consolidation Loan, private lenders may charge a fee to refinance loans. Fees associated with refinancing student loans are determined by the lender.
Refinancing vs Consolidating
Consolidating or refinancing student loans are terms that are thrown around interchangeably, but they are actually two different types of loans. A federal student loan consolidation is when you combine federal loans only through a Direct Consolidation Loan. This is done by the U.S. Department of Education only. A student loan refinance, on the other hand, allows you to combine both federal and private loans into one new loan and is done by a private lender. Below are some differences and similarities between refinancing vs. consolidating student loans.
Student Loan Refinancing vs Consolidating
Refinance
Consolidation
Combines multiple loans into one
Combines multiple loans into one
Can refinance federal and private loans
Can consolidate federal loans only
Private refinance lenders may charge a fee
No fees charged
Credit check required
No credit check
Interest rate could be lowered
Interest rate is a weighted average of prior loan rates, rounded up to nearest one-eighth of a percent
Term can be lengthened or shortened
Term can be lengthened or shortened
Can no longer qualify for federal forgiveness or repayment programs
Remain eligible for federal forgiveness and repayment programs
Saves money if interest rate is lowered
Typically not a money-saving option
Refinancing Student Loans With SoFi
Understanding student loan consolidation and refinance options can help in making an informed decision about repaying student loans.
Borrowers interested in refinancing student loans might want to consider evaluating a few options, because requirements — as well as interest rates and loan terms — can vary from lender to lender.
Refinancing student loans with SoFi comes with no origination fees or prepayment penalties. SoFi offers competitive rates, flexible terms, and an easy online application that can be completed in just a few minutes.
Prequalify for a refinance loan today.
FAQ
Can your student loans still be forgiven if you consolidate them?
Possibly. If you consolidate your federal student loans with a Direct Loan Consolidation, you are still eligible for federal loan forgiveness programs. If, however, you choose to consolidate your loans through a private lender, you will no longer be eligible for federal programs.
When is consolidating student loans worth it?
Consolidating student loans is worth it if you’re looking to combine multiple student loan payments into one or you’re looking to lower your interest rate. You can use a Direct Consolidation Loan for your federal loans and keep access to federal benefits, or you can refinance through a private lender. Refinancing through a private lender could give you a lower interest rate and lower monthly payment, but you do lose access to federal forgiveness programs.
What are some advantages of consolidating student loans?
Advantages to consolidating student loans include combining multiple loans into one loan with one monthly payment, possibly accessing a lower interest rate, switching your rate from variable to fixed, and possibly extending your loan term to reduce your monthly payment.
SoFi Student Loan Refinance If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.
CLICK HERE for more information.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website . Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. SOSL20022
How Bankrate scored Third Federal Savings and Loan
To determine Third Federal Savings and Loan’s Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.) We derived its overall score by considering three basic factors:
Affordability: Third Federal’s mortgage rates are largely below Bankrate’s averages, and you can save on upfront closing costs with the bank’s low-cost options.
Availability: The bank serves borrowers in 25 states and Washington, D.C., and doesn’t offer government loans.
Borrower experience: Third Federal has a broad range of customer service hours and lots of online resources to help guide you through the mortgage process.
Affordability: 5/5
Affordability differs from lender to lender, so comparing costs is key. Third Federal Savings and Loan clearly displays mortgage rates on its website. These rates are generally competitive and updated regularly, and you can set up automatic rate alerts to get a notification when rates drop below a certain level. If you input some details about your desired loan, you can get even more information, such as the estimated payment and closing costs or how much you could save on the interest rate by paying for points.
The bank charges common closing costs that can include an origination fee, but also offers a lower-upfront cost option for virtually every type of loan that keeps these costs to just $295. These low-cost loans have a higher interest rate, however, so you’ll have a higher monthly payment and your borrowing costs could amount to much more over the life of your loan. Additionally, while there’s no fee to get a preapproval, you might be charged an application fee depending on the type of mortgage you’re seeking. Notably, the bank also offers a $750 closing cost credit to first-time homebuyers.
Availability: 4/5
This factor can make the overall mortgage application process smoother or more challenging. Third Federal Savings and Loan works with borrowers in 25 states, so you’ll need to confirm whether it services yours before you apply for a mortgage with the bank. Its loan offerings include conventional loans as well as construction loans and financing for investment properties. The bank doesn’t offer government-insured mortgages, however.
Borrower experience: 4.7/5
Know what to expect when you work with a specific lender. Third Federal Savings and Loan has 80 years of experience lending to borrowers in Ohio and elsewhere in the U.S. The bank has an A- rating from the Better Business Bureau. Its website makes it easy to check available rates, get preapproved, apply for a loan and sign the required paperwork. Before you apply, you can use the bank’s useful calculators to determine how much home you can afford and to estimate your monthly payment. Once you get your loan online, you can use the Third Federal app to manage it; however, you can’t apply for the loan itself directly through the app.
How to apply for a mortgage with Third Federal Savings and Loan
You can apply for a purchase loan or a refinance in person at one of the bank’s branches, on Third Federal’s website or by calling 1-800-THIRD-FED.
Here are some tips to prepare for the process:
Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)
Refinancing with Third Federal Savings and Loan
Third Federal Savings and Loan offers refinancing at competitive rates in line with Bankrate’s averages. You can apply to refinance your loan through the bank’s website, either to take equity out of your home, refinance your existing balance to a lower rate or shorter term (or both) or consolidate debt. The bank’s low-cost loans ($295 closing costs) are also available for refinances.
Methodology
Bankrate’s expert editorial team collects lender information through a variety of methods. We contact lenders directly, and we also turn to regulatory filings and to assessments by third parties. Our research takes into account three main factors – affordability, availability and borrower experience.
Bankrate’s reporters and editors have decades of experience covering the mortgage industry. They’re skilled at gathering information through interviews and by scouring regulatory filings. Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Here’s how we assess each of the categories:
Affordability. Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) a lender’s lowest advertised annual percentage rate (APR) based on Bankrate’s sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors and 2) established-customer discounts or incentive pricing, when applicable.
Availability. Another factor is how quickly your loan application will be approved, and how many loan programs the lender offers. So we evaluate approval and closing timelines and diversity of loan products.
Customer experience. Finally, we delve into what it’s like to deal with the lender as a consumer. We look at the lender’s application process and availability of customer service support. We also consider the results of J.D. Power’s 2022 Mortgage Origination Satisfaction Survey.
Bankrate’s editorial team confirms the accuracy of data at the time of publication. Our team is dedicated to maintaining the timeliness of information – the mortgage industry is changing constantly, so we regularly revisit these reviews to update them.
Bankrate’s methodology page spells out our rating process in greater detail.
2021 VA Home Loan Limit: $0 down payment up to $5,000,000* (subject to lender limits) /2 open VA loans at one time $816,500 (Call 877-432-5626 for details).
How to Apply for a VA Home Loan?
This is a quick look at how to apply for a VA home loan in Napa county. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA house loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Napa County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the Napa County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in Napa County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Pro tip: Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
What is the Median Home Price?
As of March 31, 2021, the median home value for Napa County is $786,853. In addition, the median household income for residents of the county is $88,596.
How much are the VA Appraisal Fees?
Single-Family: $600.
Individual Condo: $600.
Manufactured Homes: $600.
2-4 Unit Multi-Family: $850.
Appraisal Turnaround Times: 7 days.
Do I need Flood Insurance?
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
In Napa County, there are many flood plains, both in the City of Napa and in the unincorporated areas. Also, FEMA recommends people purchase flood insurance on lands that were previously damaged in wildfires.
How do I learn about Property Taxes?
For questions about property tax, you can get in touch with the Napa County Assessor, John Tuteur. His office is at 1127 First Street Suite A Napa, CA 94559 and can be called at (707) 253-4466.
Veterans, owner-occupiers, and senior citizens may be eligible for property tax relief. You can find out whether you qualify through the county assessor. In addition, the Assessor’s Office can do re-appraisals to determine property values and flood risks.
What is the Population?
The county’s population of 137,744 is 51% White, 34% Hispanic, and 8% Asian.
Most county residents are between 18 and 65 years old, with 20% under 18 years old and 19% older than 65.
In total, the county has about 49,032 households, with an average of two people per household.
What are the major cities?
The City of Napa is the largest city, with a population of 76,915. It is also the county seat. The next-largest city is American Canyon, with a population of 19,454. All of the other cities have fewer than 6,000 residents. Some of the notable small towns in Napa County are Calistoga, St. Helena, and Deer Park.
About Napa County
Welcome to Wine Country! Napa County the premier grape growing and wine-producing region in the country. Known for its rich soil, Napa County has a long tradition of farming, in addition to its world-famous vineyards. Plus, the cities of Napa and Calistoga are known for their amazing restaurant scene. Outside of the main cities, residents appreciate the clear views of the county’s rolling hills and big, blue skies.
In addition to centuries of local knowledge, the county works to stay on the cutting edge of agricultural technologies. The University of California Cooperative Extension helps the general public to stay up to date on the newest developments in farming and growing.
Also, the local schools provide education from kindergarten through community college. Plus, the nearby Sonoma State University and University of California schools offer four-year degrees without having to travel far from home.
Veteran Information
Napa County is currently home to 7,741 veterans.
County Veteran Assistance Information
Napa County Veterans Services – 650 Imperial Way, 2nd Floor, Napa, CA 94559.
VA Home Loan Information
For more information about VA Home Loans and how to apply, click here.
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
Name (ID): REDWOOD GARDENS #1,2 & 3 (C00436) Address: (UNITS #1 THRU #98) NAPA CA 94558-0000 NAPA Status: Accepted Without Conditions Request Received Date: 10/09/2010 Review Completion Date: 10/09/2010
A less-than-stellar credit score doesn’t automatically disqualify you from refinancing your mortgage. Fortunately, there are several options to refinance your mortgage with a bad credit score.
Here’s what you need to know about lender credit standards and the steps you can take to refinance with a lower credit score.
What Credit Score Is Needed to Refinance?
Every lender has a different set of criteria for credit scores and refinancing. To refinance a conventional mortgage, most lenders look for a credit score of at least 620.
Some government programs may require a credit score of at least 580 and some may have no minimum at all.
For example, most Federal Housing Administration (FHA) loans require a credit score of at least 580. The Department of Veterans Affairs (VA) doesn’t set a minimum credit score.
As a general rule of thumb, the higher your credit score, the more likely you are to qualify for a mortgage refinance.
However, your credit score isn’t the only determining factor. If you have a higher debt-to-income (DTI) ratio and loan-to-value (LTV) ratio and minimal cash on hand, the credit score requirement may increase.
How to Refinance a Mortgage with a Bad Credit Score
It may be possible to refinance your mortgage with a bad credit score, without needing to improve your credit profile first. You should explore all of your refinancing options to find the one that makes the most sense for your situation.
1. Chat with Your Existing Mortgage Lender
Talk with your lender about your refinance options with a bad credit score. If you’ve made timely mortgage payments, your lender may be able to work with you even with a bad credit score.
Your lender could offer you a portfolio refinance, which is originated and kept by the lender rather than being sold on the secondary market. Because of this, portfolio refinance loans oftentimes have relaxed qualification standards.
It’s still a good idea to speak with multiple lenders, apply and compare quotes, even if your current mortgage lender says you’re eligible to refinance.
2. Use a Cosigner
Another option is to use a friend or family member as a cosigner on your mortgage refinance loan. Your cosigner must be at least 18 years old, have a valid Social Security number, and meet all minimum requirements for the loan.
Keep in mind that the cosigner is taking a major risk and is legally responsible for your debt if you stop making payments. This could also hurt your cosigner’s credit score.
3. FHA Refinance Programs
The FHA offers several refinance options for homeowners with bad credit. An FHA loan is a mortgage that is backed by the U.S. government and issued by a bank or other approved lender.
Here are some options:
FHA rate-and-term refinance: The FHA rate-and-term refinance requires a credit check and a minimum credit score between 500 and 580, depending on your LTV ratio. You also need to prove that you’ve made 12 consecutive monthly mortgage payments on time.
FHA streamline refinance: An FHA streamline refinance has two options: credit qualifying and non-credit qualifying. A non-credit qualifying streamline refinance doesn’t have a minimum credit score but you may pay a higher interest rate. With a credit qualifying streamline refinance, the lender will run a credit check and verify your DTI ratio.
FHA cash-out refinance: You can borrow up to 80% of your home’s value with a credit score as low as 500, but some lenders may require a higher score.
FHA 203(k) refinance: This is a type of refinancing that enables homeowners to combine renovation expenses into the total amount of the new mortgage. The FHA accepts credit scores as low as 580, although some lenders might require a score of 620 or higher to qualify for a 203(k) refinance loan.
4. VA Refinance
Servicemembers, veterans, or qualifying spouses may qualify for a VA loan backed by the federal government and issued by private lenders. The VA has no minimum credit score requirement, but the lender may require a credit score of 620 or higher.
There are two VA refinance options:
VA streamline refinance: If you’re eligible, you can refinance with bad credit with an Interest Rate Reduction Refinance Loan (IRRRL). The IRRRL must be used to refinance your existing VA-backed home loan and while the VA doesn’t require a new credit check, the lender may be different.
VA cash-out refinance: You can use the VA cash-out refinance to tap your home’s equity, but you must meet the VA’s — and the lender’s — credit and income requirements.
5. USDA Streamlined Assist Refinance
The USDA’s Streamlined Assist program gives current USDA direct and guaranteed home loan borrowers with low or no equity the ability to refinance for a lower interest rate and lower monthly payments. No credit review is required, but you must have made at least 12 consecutive mortgage payments and meet income eligibility standards.
How to Improve Your Credit Score to Refinance a Mortgage
There are several things you can do to improve your credit score before refinancing your mortgage.
Raising your credit score by just 20 points can potentially lower your monthly mortgage payments and save you thousands on interest.
Here are a few options:
Check your credit report: You can check your credit report for free once per year with the three major credit bureaus — Experian, Equifax, and TransUnion — to see what’s keeping your credit score so low. You can also check for errors, unauthorized charges, and fraud, which could be lowering your credit score. If you find any issues, you can dispute them with the credit bureau.
Pay down debt: Your DTI is another factor that lenders will consider. Try to keep your DTI under 43%.
Make payments on time: Your credit score is heavily influenced by your payment history. A single missed payment can significantly lower your credit score. Payment history accounts for 35% of your FICO credit score.
Save money: Build your savings to make a larger down payment or keep the extra cash reserves to potentially lower your level of risk to lenders.
Explore Your Refinance Options with Total Mortgage
Even if you have a low credit score, this doesn’t mean that you are disqualified from refinancing your loan. Consult with a Total Mortgage advisor to explore all your mortgage refinance options.
Find an expert near you or apply for a refinance loan online!
If you own a second home or hold a high balance loan amount, you may want to refinance sooner rather than later. That’s assuming you were thinking of refinancing.
The same goes for those planning to purchase a second home or take out a mortgage with a high balance, which is a loan amount above the baseline conforming limit.
The conforming limit for 2022 is $647,200, so if your loan amount will be north of that, take note.
Fannie Mae and Freddie Mac are raising loan-level price adjustments (LLPAs) for both types of transactions come April 1st.
Depending on the details of your loan scenario, this could drastically increase your closing costs and/or mortgage rate.
Second Home Mortgages and High Balance Loans Going Up in Price
In an effort to bolster its support for affordable housing and sustain equitable access to homeownership, the Federal Housing Finance Agency (FHFA) will be raising (LLPAs) for certain transactions.
These LLPAs get passed onto consumers in the form of either more expensive closing costs or higher mortgage rates.
As noted, they pertain to the financing of second homes, whether a purchase or refinance, and high-balance loans, those which exceed the conforming limit.
The idea here is that these types of home loans go toward more affluent individuals. And they also create more risk for Fannie Mae and Freddie Mac, which are backed by taxpayers.
After all, large loan amounts and vacation properties are more likely to default and/or create larger losses for the Enterprises.
And that could jeopardize the mission of Fannie and Freddie, which is mainly to provide affordable financing to first-time home buyers, as well as low- and moderate-income borrowers.
Looked at another way, these new fees will subsidize programs like HomeReady, Home Possible, HFA Preferred, and HFA Advantage, which provide cheaper financing to lower-income borrowers.
Speaking of, fees won’t be going up on those programs, or for first time home buyers in high-cost areas with incomes at/below 100 percent of area median income.
How Much More Expensive Will Mortgage Rates Be in April?
Before you get too worried, the cost of these changes may be minimal, depending on the loan scenario in question.
For example, upfront fees for high balance loans will increase anywhere from 0.25% to 0.75%, depending on the loan-to-value (LTV) ratio.
If we’re talking about a loan amount of $750,000 on a primary residence, another .25% in fee is roughly $1,875.
This might move the dial on your 30-year fixed mortgage from 3.25% to 3.375%, or simply increase closing costs.
If that fee is .75% higher due to an LTV of 80%, we’re talking $5,625 in cost, which will more than likely increase your mortgage rate an eighth of a percent or more.
It’s not the end of the world, but it’s yet another thing working against homeowners and home buyers as mortgage rates have started off 2022 higher.
And they tend to peak during spring and early summer, which means financing will be that much more expensive.
The situation is even worse for second home buyers or owners, where pricing adjustments will increase anywhere from 1.125% to a staggering 3.875%.
Using our same loan amount of $750,000, even at a low LTV ratio, the increase in upfront costs could equate to around $10,300.
If we’re talking a high balance loan on a second home at 80% LTV, which isn’t out of the question, it’s an additional cost of about $31,000.
Again, depending on if you let the rate absorb these additional costs, you could be looking at a rate that’s .25% to .50% higher, or more.
Second Home Owners and Those with Large Loan Amounts Should Review Their Mortgages Now
If you believe these changes may affect you, it could be a good time to review your outstanding home loans.
The same goes for prospective home buyers thinking about purchasing an expensive property or a vacation home, which are en vogue due to COVID.
As illustrated above, these higher pricing adjustments have the ability to raise mortgage rates considerably. Or at the very least bump up your closing costs.
With home prices and mortgage rates also seemingly headed higher by spring, it could make sense to accelerate any refinance or home purchase plans to avoid these looming fees.
The FHFA said the new fees won’t go into effect until April 1, 2022 to “minimize market and pipeline disruption,” aka higher pricing for confused customers.
But watch out for mortgage lenders beginning to price in changes earlier on. Simply put, this is yet another reason to make any planned move sooner rather than later.
If you own an investment property, the same types of pricing changes might be on the horizon. So if you’re looking for better terms or cash out, now might be the time.
2021 VA Home Loan Limit: $0 down up to $5,000,000* (Subject to lender limits) /2 open VA loans at one time $548,250* (Call 888-573-4496 for details).
How to Apply for a VA Home Loan?
This is a quick look at how to apply for a VA home loan in Plumas County. For a more detailed overview of the VA home loan process, check out our complete guide on how to apply for a VA home loan. Here, we’ll go over the general steps to getting a VA home loan and point out some things to pay attention to in Plumas County. If you have any questions, you can call us at VA HLC and we’ll help you get started.
Get your Certificate of Eligibility (COE)
Give us a call at (877) 432-5626 and we’ll get your COE for you.
Are you applying for a refinance loan? Check out our complete guide to VA Refinancing.
Get pre-approved, to get pre-approved for a loan, you’ll need:
Previous two years of W2s
Most recent 30 days paystubs or LES (active duty)
Most recent 60 days bank statements
Landlord and HR/Payroll Department contact info
Find a home
We can help you check whether the home is in one of the Plumas County flood zones
Get the necessary inspections
Termite inspection: required
Well or septic inspections needed, if applicable
Get the home appraised
We can help you find a VA-Certified appraiser in Plumas County and schedule the process
Construction loan note: Construction permit/appraisal info
Building permit
Elevation certificate
Lock in your interest rates
Wait until the appraisal lock in your loan rates. If it turns out you need to make repairs, it can push your closing back. Then you can get stuck paying rate extension fees.
Close the deal and get packing!
You’re ready to go.
What is the Median Home Price?
As of March 31st, 2021, the median home value for Plumas County is $294,510. In addition, the median household income for residents of the county is $55,359.
How much are the VA Appraisal Fees?
Single-Family: $600.
Individual Condo: $600.
Manufactured Homes: $600.
2-4 Unit Multi-Family: $850.
Appraisal Turnaround Times: 7 days.
Do I need Flood Insurance?
The VA requires properties are required to have flood insurance if they are in a Special Flood Hazard Area.
In Plumas County, rivers like the Middle Fork Feather River and Wolf Creek have flood hazard areas around them. However, the city of Quincy can see significant flooding around Spanish Creek which crosses through the north.
How do I learn about Property Taxes?
Charles W. Leonhardt is the Plumas county tax assessor. His office can be reached at 1 Crescent Street Quincy, California 95971. In addition, his office can also be reached by calling (530) 283-6380.
The state of California offers incentive programs that expand statewide for new, growing, and relocating businesses. Two of these programs are the California Competes Tax Credit which offers qualifying businesses with a tax credit, and the New employment Credit which offers a tax credit for taxpayers who hire full-time employees. Furthermore, the state offers several other programs to further diversify the state’s economy.
What is the Population?
The county’s population of 18,807 is 83% White, 9% Hispanic, and 3% American Indian.
Most county residents are between 18 and 65 years old, with 17% under 18 years old and 28% older than 65.
In total, the county has about 8,047 households, with an average of two people per household.
What are the major cities?
The county has one city and 46 census-designated places, including Quincy, which serves as the county seat.
About Plumas County
Plumas County is full of beautiful streams, rivers, and forests covering about 70% of the county. However, the most significant employment industries in the county are health care, retail trade, and construction. Hence the most common types of employment are administrative support, food preparation, and construction.
In addition to its existing industries, the county is also taking an active role in helping small businesses within the county grow. The county has a partnership with the U.S. Small Business Administration, which provides free business counseling, SBA guaranteed business loans, home & business disaster loans, and federal government contracting.
When it comes to education, the county is home to the Plumas Unified School District, which has eleven schools that serve about 2,147 students annually. In addition, higher education opportunities are also available in the county with the Feather River Community College District, which offers 4-year degree bachelor programs.
Finally, the county is also a perfect place for people who enjoy the outdoors, with places like Bald Eagle Mountain, Dixie Mountain, and Lake Almanor. Furthermore, both visitors and residents can enjoy the county’s many trails, camping grounds, and water-based recreational activities for the whole family to enjoy.
Veteran Information
The county is currently home to 1,852 veterans.
Plumas County is home to one VFW post:
Post 3825 Kenneth M. Hayes – 292 Lawrence Street, Quincy, CA 95971.
County Veteran Assistance Info.
Plumas County Veterans Services Office – 270 County Hospital Road, Suite 206, Quincy, CA 95971.
Apply for a VA Home Loan
For more information about VA Home Loans and how to apply, click here.
If you meet the VA’s eligibility requirements, you will be able to enjoy some of the best government-guaranteed home loans available.
VA loans can finance the construction of a property. However, the property must be owned and prepared for construction as the VA cannot ensure vacant land loans.
VA Approved Condos
There are no VA-approved condos available in Plumas County. Although if you’re still interested in getting a condo through the approval process, call us at (877) 432-5626.