This one is simple. There are two distinct reasons why San Diego veterans choose me over navy Federal Credit Union for VA home loans:
1- Service: Navy Fed requires vets to deal with a call center in Virginia. I'm in Kearny Mesa.
2- Rates/Fees: I smoke Navy Fed on VA home loan rates because I have more choices than they do.
You'll have to trust me on the first reason (or you can read what this customer said about me) but I'll demonstrate the second reason with cold, hard numbers for you. Navy Fed posts its mortgage rates daily. I copied its VA rates for June 6, 2009 here:
Go ahead and click the link (View this photo) and you'll see that a VA home loan rate is 5.5% today. To secure that rate, however, a veteran has to pay 1.0% discount point (or $2,500 for a $250,000 loan). But wait! That's not all. Read the small print on the NFCU rate sheet:
That's two points a veteran pays to NFCU to get a 5.5% VA home loan rate. For a $250,000 loan, it would cost $5,000. Let's see what I could do at 5.5%, for a VA home loan, today:
I charge a 1% origination fee (just like Navy Fed). I also charge a $695 processing fee. That brings us to a total of $3195. I don't charge a discount point. In fact, I credit the yield spread premium a lender offers me (in this case, .18% of the loan amount or $450) to the veteran. This lowers my fee from $3195 to $2745.
I'm $2,255 CHEAPER than Navy Fed's VA home loan offering at 5.5%; that's smoking them on rates.
