If I may suggest, take a look at the Better Business Bureau website , bbb.org/utah/business-reviews/financial-services/flagship-financial-group-llc-in-lehi-ut-18000121/ This gives a wonderful picture.
I currently have a $340K loan at a fixed rate of 3.25%. Like most people with VA loans, I constantly get junk mail encouraging me to refinance to lower rate. Flagship Financial sent me one that said “Call immediately if your rate is higher than 1.75%!” WOW, I thought. That’s a huge monthly savings. What’s not to like? So I called. Here’s the catch…
The only cost required by the VA to refinance is a funding fee of one-half of one percent of the total loan amount which may be paid in cash or included in the loan. Since my loan still has approximately $340K, the fee required by VA would be a small ~$1,700. No problem right, since it’s wrapped up in the loan and there’s “no out of pocket expenses per their flyer.” Then comes the fine print. The closing costs on my loan are approximately $5,200 from Flagship, which makes their fee ~$3,500, over 52% higher than the cost that the VA requires. I know that they need to make a profit too, but $3500? There is also a “discount fee,” which is the fee it costs to get the lowest rate. That fee is $7,000. This makes the lender fees over 83% higher than what the VA requires. If you do the math, this adds an additional $12,000 to my original $340K loan. Even with the lower interest rate, there is no savings, as this will take 48 months to pay off just the increase in payments I would have to take on!
So, to make a very long story short, DON’T DO IT! If you’re going to refinance through anyone, talk to your current lender. Also, always stick with the fixed rate and don’t refinance unless you can lower your rate by a full percentage point. There are lenders that do not charge a fee to put you into a lower rate other than the minimum VA required. I don’t know the exact details of your loan, but “truth in lending” requires that Flagship spell out these fees when they send you the paperwork. If you can do basic math, you’ll see what I’m talking about. Make sure you check, double check and if you aren't sure have someone else help you with it. Fortunately I checked and hadn't signed anything binding. Hope this is helpful for someone out there.
Flagship Financial Group, LLC. Reviews
If I may suggest, take a look at the Better Business Bureau website , bbb.org/utah/business-reviews/financial-services/flagship-financial-group-llc-in-lehi-ut-18000121/ This gives a wonderful picture.
I currently have a $340K loan at a fixed rate of 3.25%. Like most people with VA loans, I constantly get junk mail encouraging me to refinance to lower rate. Flagship Financial sent me one that said “Call immediately if your rate is higher than 1.75%!” WOW, I thought. That’s a huge monthly savings. What’s not to like? So I called. Here’s the catch…
The only cost required by the VA to refinance is a funding fee of one-half of one percent of the total loan amount which may be paid in cash or included in the loan. Since my loan still has approximately $340K, the fee required by VA would be a small ~$1,700. No problem right, since it’s wrapped up in the loan and there’s “no out of pocket expenses per their flyer.” Then comes the fine print. The closing costs on my loan are approximately $5,200 from Flagship, which makes their fee ~$3,500, over 52% higher than the cost that the VA requires. I know that they need to make a profit too, but $3500? There is also a “discount fee,” which is the fee it costs to get the lowest rate. That fee is $7,000. This makes the lender fees over 83% higher than what the VA requires. If you do the math, this adds an additional $12,000 to my original $340K loan. Even with the lower interest rate, there is no savings, as this will take 48 months to pay off just the increase in payments I would have to take on!
So, to make a very long story short, DON’T DO IT! If you’re going to refinance through anyone, talk to your current lender. Also, always stick with the fixed rate and don’t refinance unless you can lower your rate by a full percentage point. There are lenders that do not charge a fee to put you into a lower rate other than the minimum VA required. I don’t know the exact details of your loan, but “truth in lending” requires that Flagship spell out these fees when they send you the paperwork. If you can do basic math, you’ll see what I’m talking about. Make sure you check, double check and if you aren't sure have someone else help you with it. Fortunately I checked and hadn't signed anything binding. Hope this is helpful for someone out there.