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VA Loan Refinance Scams
Last Post Aug 29, 2013 07:07 AM by Elaine64. 5 Replies.
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Joe and Deb - VR SAMUser is Offline VR SAM Senior Member Senior Member Posts:328
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Feb 06, 2010 12:39 PM

    We are getting numerous comments from some of our clients and forum users who financed their homes with VA loans regarding direct mail and telephone scams offering extremely low streamline refinance rates.These are coming from a number of companies but Amerigroup and Mortgage Investors are two of the names we are hearing. In all liklihood they are getting folks addresses from the public record of the lien which would probably indicate a VA loan. First, streamline VA is a great option, if the rates have dropped. But, these companies are quoting rates as low as 3.5% which just isn't possible.  If you want to explore a streamline, call your current lender and see what they will offer. Or ask Susan Wallace for a sanity check on this forum about any "to good to be true" offers. Proceed with caution if you choose to talk to these folks.  VR SAM's recommendation is to completely ignore any direct mail / phone telemarketers and if appropriate, report them for "do not call list" violations. Joe Gladden, Managing Partner, VR SAM

    Joe and Deb Gladden
    703 754-3036
    Fax: 703 848-3690
    homesformilitary@vrsam.com
    http://www.vrsam.com
    Specializing in Military, Defense Contractors, Fed Employees Relocation.
    Ask us About Fawn Lake - Virginia's Best Kept Secret!
    Tags: VA Loan Refinance Scams
    HarryUser is Offline New Member New Member Posts:1
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    Oct 08, 2011 03:26 PM
    Hi,

    We live in Oregon and got a direct mailer about refinancing our home loan. They cam by the house and talked with us and quoted us 1.66% for the first three years, with a ceiling of 8% on a 30 year variable rate loan. Their refinance fee will be $12,000 does this seem like a good deal? They said the variable rate was tied to the value of the U.S. dollar and not the stock market so will most likely stay low. Does this seem good? We are very inexperienced with such things and are having trouble deciding if this will be better than our current 4.75% fixed 30 year loan. We bought our house last year for $275,000 and owe about the same on it now since our payments all seem to go towards the interest and not the balance. Help from anyone will be appreciated!

    Harry
    Joe and Deb - VR SAMUser is Offline VR SAM Senior Member Senior Member Posts:328
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    Oct 09, 2011 06:09 AM

    Harry, it sounds like an absolute horrible idea and likely a scam.  I strongly encourage you do stick with your 4.75% fixed.   By hisroric standards, you have a terrific loan product and rate.   To see if any form of refinance makes sense,  email Susan Wallace at susan.wallace@emeryfed.com.
    to get her view.   

    On this teaser type loan, you may get a good deal and save a few bucks for a couple of years, but if that rates goes up to 8%, your payments could come close to doubling!    Don't do it and don't let this guy back in the door and don't give him the time of day on a phone call either!     While I don't know when rates will go up, I do believe they will eventually.   Then you will be stuck!  

    Joe Gladden

    Joe and Deb Gladden
    703 754-3036
    Fax: 703 848-3690
    homesformilitary@vrsam.com
    http://www.vrsam.com
    Specializing in Military, Defense Contractors, Fed Employees Relocation.
    Ask us About Fawn Lake - Virginia's Best Kept Secret!
    Susan Wallace Posts:831
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    Oct 10, 2011 09:06 AM

    Harry,

    This company offers only one program, the 3 year ARM - that means Adjustable RATE Mortgage. They only offer the 3 year ARM because it is in THEIR best interest not yours.  Any lender that doesn't offer a variety of options would not have your best interest in mind.

    Logically, if you are in a 30 year fixed at 4.75 currently and the new loan could increase 8% over the life of the loan, then no it is not a good deal for you unless you intend to sell your home prior to the increases.

    What you can do is a streamline VA loan for a 30 year fixed rate which could get you into the high 3's or low 4's, let the lender pay your closing cost (thus keeping your 12k they are charging) and you won't have to wonder at what point your payment will increase.

    Emery Federal Credit Union lends in all 50 states and I would be happy to review your situation with you personally or refer you to a trusted lender.  I also have several references I can provide to you.  My suggestion is you google the lender that has targeted you and I believe you will find there are several borrowers out there who feel cheated.

    Sincerely,

    Susan Wallace

    571-283-1337 ph

    www.LoansBySusan.net

    susan.wallace@emeryfed.com

    Catherine Taniguchi Posts:831
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    May 24, 2013 08:20 AM
    We were called yesterday by "mortgage investors" to refinance our loan. Our loan is at a high interest rate and we have been talking about refinance it. Someone is coming out this morning to talk to us. So far there is no mention of fees.
    Cathy
    Elaine64 Posts:831
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    Aug 29, 2013 07:07 AM
    Help I think that I've been scammed!

    I applied for a VA Streamline Loan at a 5% interest rate and 0.125 points; I locked in this rate. I received a Good Faith Estate from the lender. After closing (mail in), a few months later I realized that the lender had changed the points to 2.00.

    What can I do????
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