Tuesday, September 20, 2022

Navy Federal Credit Union Home Loans

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Lets Talk Mortgages | Navy Federal Credit Union

About Ryan Guina

Ryan Guina is The Military Wallet’s founder. He is a writer, small business owner, and entrepreneur. He served over six years on active duty in the USAF and is a current member of the Illinois Air National Guard.

Ryan started The Military Wallet in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then. He also writes about personal finance and investing at Cash Money Life.

Ryan uses Personal Capital to track and manage his finances. Personal Capital is a free software program that allows him to track his net worth, balance his investment portfolio, track his income and expenses, and much more. You can open a free Personal Capital account here.

Featured In: Ryan’s writing has been featured in the following publications: Forbes, Military.com, US News & World Report, Yahoo Finance, Reserve & National Guard Magazine , Military Influencer Magazine, Cash Money Life, The Military Guide, USAA, Go Banking Rates, and many other publications.

What Fees Will You Pay

Here are some of the more common lender fees.

  • Origination fee: A 1% fee applies to all mortgages. Navy Federal will waive it with a 0.25% increase to your loan interest rate.
  • Homebuyers Choice and Military Choice funding fee: 1.75% of the loan amount. You can also waive this fee with a 0.375% interest rate increase.
  • VA funding fee: VA-insured loans have a one-time fee from 0.50% to 3.60% of the loan amount. The precise amount depends on your down payment size.

The standard Freedom Lock feature is free for the first 60 days on qualifying loans. However, extending the rate lock window can require purchasing discount points or increasing the loan APR. Discount points are optional and cost 1% of your loan amount to reduce the lifetime loan costs.

Your loan estimate will include additional estimated closing costs that can total from 2% to 4% of your loan amount.

Some of the additional fees with a Navy Federal home loan can include:

  • $19.73 per borrower
  • Flood certification: $5.15
  • Home appraisal: At least $505
  • Tax service fee: $55 to $215

How Do I Make An Offer On A Home

When you find a home to your liking, rely on your real estate agent to help you compose an offer. If you don’t have an agent, please contact us at , and we’ll connect with you one of our RealtyPlus1 partners – depending on the price of the home, you may be eligible for cash-back incentives after closing.

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What Are The Home Equity Loan Requirements Of Navy Federal Home Equity Loans

This lender’s maximum loan to value rate is 100%. That means the total debt secured by the property cannot exceed 100% of its value. Let’s say you own a property with a current market value of $100k, but you still owe $20k on your mortgage. Your equity would be $80k. In this scenario, if you have good credit, you may qualify for a line of credit of up to $80k.

Navy Federal Customer Service Reviews

Navy Federal Credit Union Auto Loan Review

According to J.D. Powers 2019 U.S. Primary Mortgage Origination Satisfaction Study, Navy Federal Credit Union ranks high for overall borrower satisfaction a score of 882 on a 1,000-point scale.

That puts it just above Quicken, the 10-year winner for non-military-specific mortgage lenders.

Mortgage-related complaints at major lenders

Company
0.33 837/1,000

The credit union also has a low number of customer complaints filed with The Consumer Financial Protection Bureau for 2019.

Unfortunately, a number of customer complaints on Navy Federals Trustpilot page involved slow response times when applying for original mortgages and refinances.

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What Is Debt To Income And How To Calculate It

Your debt to income is literally debt divided by income. So if you have a car payment of $450 and a mortgage of $1200, youd add those two payments together $1200 + $450 = $1650. Then divide that number by your gross monthly income.

If you earn $60,000 per year, or $5,000 per month, your debt divided by income is $1650/$5000=33%.

Having a total DTI of less than 46% total is ideal, and there are housing DTI requirements as well. AgainI couldnt get a clear answer on this because each loan and borrowers circumstances are different.

Navy Federal Credit Union Heloc

As its full name implies, a HELOC gives you a line of credit. In that respect, it’s a bit like a credit card: you can borrow as much as you want up to your credit limit. And you can repay and re-borrow as often as you like. You only pay interest on your balances.

The main characteristics of Navy Federals HELOC are:

  • Borrow up to 95% of your equity
  • Loan credit limits range from $10,000 to $500,000
  • Your APR could be as low as 5.00%* But
  • Interest rates are variable, as they are with most HELOCs They go up and down with the U.S. Prime Rate. At the time of this writing, the Federal Reserve was planning several rate hikes
  • No application, origination, or inactivity fees but there are others. Navy Federal says, “For loan amounts of up to $250,000, closing costs that members must pay typically range between $300 and $2,000”
  • You can have a 20-year “draw” period, during which you can borrow and repay as you wish. But the “repayment” period kicks in at the start of year 21, and then you can only pay down your balance, zeroing it by year 40.

* Interest rates quoted on Navy Federals website in July 2022 ranged from 5.00% for a 70% LTV to 6.50% for a 95% LTV. Click the link for a fuller list of sample rates. The rate you’re offered will vary depending on your credit score and existing debt burden. And remember: These are variable rates.

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Navy Federal Mortgage Refinance

Navy Federal mortgage refinance options include:

Refinancing your home loan can reduce your mortgage rate and monthly payment, as well as decrease your loan term. You can even borrow cash from your equity.

Refinance terms range from 10 to 30 years, and you may be eligible with a loan-to-value ratio of up to 95 or 100 percent .

Which Mortgage Loans Does Navy Federal Offer

Money Minute – Home Equity Loans

Navy Federal offers a variety of mortgage options, including government-back options, and its unique offerings: Interest Only, Homebuyers Choice, and Military Choice.

Both fixed-rate loans and adjustable-rate loans are available, allowing you to choose the Navy Federal mortgage that fits your needs.

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Navy Federal Credit Union Home Equity Loan

The main characteristics of Navy Federals home equity loan, which is ideal if you want a lump sum, are:

  • You may be able to borrow up to 100% of your equity with a VA loan could be 100%)
  • Your annual percentage rate can be as low as 4.99%* But see below
  • Your loan rate will be fixed So no surprise hikes
  • You can borrow over five, 10, 15, or 20 years
  • Loan amounts range from $10,000 to $500,000
  • There are no application or origination fees But there will likely be some closing costs

* Interest rates quoted on Navy Federals website in July 2022 ranged from 4.99% for a five-year loan with a 70% LTV to 8.5% for a 20 -year loan with a 95% LTV. Click the link for a fuller list of sample rates. The rate you’re offered will vary depending on your credit score and existing debt burden.

This deal is appreciably better than most of the ones we review. So if you are or become a member, put Navy Federal at the top of your shortlist when you begin comparison shopping.

Navy Federal Credit Union Mortgage Rates And Fees

When you select “Mortgages” on the Navy Federal website, you’ll scroll down to see rates for VA loans and conventional loans. Click on the type of loan you want, and you’ll see typical rates for 15-year and 30-year terms.

Navy Federal doesn’t show customized rates based on your credit score, down payment, and zip code, though, as some other lenders do.

Right now, the conventional rates on Navy Federal’s website are a little lower than national averages on the Federal Reserve’s website. If you want a low rate, Navy Federal is a worthwhile option.

Navy Federal charges a 1% origination fee, but you can waive it in exchange for a mortgage rate that is 0.25% higher.

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Navy Federal Credit Union Mortgage Reviews

One of the best ways to research mortgage lenders is by reading third-party reviews. You can discover what actual customers are saying about them before you choose to do business with them.

Navy Federal Credit Union currently has a Better Business Bureau rating of A+, indicating excellent customer service. They also have very few complaints. You can find more Navy Federal Mortgage reviews at other review sites as well.

Does Navy Federal Credit Union Offer Home Equity Loans Or Helocs

Home Improvement Loans Navy Federal Credit Union

Yes! Both.

Members can get either a Navy Federal Credit Union Home Equity Loan or a Navy Federal Credit Union HELOC.

For clarity, your home equity is the amount by which the appraised value of your home exceeds your current mortgage balance.

Both these forms of borrowing have outstanding rates compared to most other types of loans. But that’s partly because your home secures the loans. If you fall too far behind with payments, this means you could face foreclosure.

Navy Federal Credit Union was founded in 1933 by seven Navy Department employees. Today, it has 11.2 million members and an excellent reputation. Its broad product range includes Navy Federal Credit Union home equity loans, home equity lines of credit , mortgages, several types of other loans, credit cards, various savings accounts, and general banking services.

Navy Federal has 350 branches, a few of which are overseas. They tend to serve areas with a significant military presence, as you’d expect. However, many of its members rarely visit branches. Instead, they rely on the credit union’s website and highly rated mobile app to do their banking. The credit union operates in all 50 states.

Eligibility

Because Navy Federal is a credit union, you have to be a member to access its products and services. And that’s restricted to “officers and enlisted men and women of all branches of the military, veterans, DoD employees, and their family members.”

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What’s A Mortgage Preapproval

A preapproval shows how much you’ll be eligible to borrow when you decide to make an offer on a home. Your preapproval is based on information you provide, including your credit score, income, assets, debts, employment history and other financial information. The preapproval isnt a commitment to lend until your information is verified with supporting documentation.

Navy Federal Ease Of Application

Navy Federal has a digital application platform called HomeSquad, which lets you get preapproved for a mortgage online. In some cases, you can get preapproved instantly, the lender says. With the technology, you can upload documents, connect to your bank accounts to verify assets, get notified when you reach milestones, receive personalized help from credit union representatives and check the status of the loan.

You can also start an application over the phone or in person at a Navy Federal branch. No matter how you apply, a home loan advisor can help you choose the right mortgage for your situation.

The underwriting model for Navy Federal lets loan officers evaluate a borrowers situation using alternative credit data in some cases instead of adhering strictly to traditional credit scores. Navy Federal can evaluate a buyers borrowing risk, taking the full financial picture into consideration.

Loan officers can look at whether a borrower pays rent and utility bills on time, keeps an existing Navy Federal banking account in good standing and makes timely payments on other credit accounts.

Navy Federal also offers a free service that matches the member with a real estate agent and gives cash back at closing when the property is bought or sold through the referred agent. The cash back amount can range from $400 to $8,000, depending on the homes purchase price. The program is not available in Iowa and does not offer cash back in Arkansas, Louisiana or Oklahoma.

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Pros & Cons Of Navy Federal

Initiated at the end of the Great Depression in 1933 by seven Navy employees who wanted to help their co-workers and themselves reach their financial objectives, Navy Federal is a member-owned, not-for-profit credit union. Because of that, they offer good rates, lower fees, and some good discounts.

In 2019, Navy Federal received 882 points out of 1,000 in the J.D. Power U.S. Primary Mortgage Origination Satisfaction Study. That put them in third place, points-wise. They also received the distinction of being one of Fortunes 100 Best Companies to Work For in 2019. That same year the Reputation Institute named Navy Federal, The Most Reputable Company in Financial Services while Computerworld ranked Navy Federal in the top 10 of Best Places to Work in IT.

But even with winning these awards and more, Navy Federal isnt flawless, so their advantages and drawbacks are listed below.

Navy Federal Credit Union Full Review

Navy Federal Credit Union Mortgage Pre-Approval Update – {HomeBuyers’ Choice}

Headquartered in Vienna, Virginia, Navy Federal Credit Union was founded in 1933 and now serves more than 10 million members with 344 branches worldwide. It received an above-average rating in J.D. Powers 2020 U.S. Primary Mortgage Origination Satisfaction Study and offers a full suite of banking services for its members, including mortgages, auto loans, checking and savings accounts, student loans, and more.

Some of Navy Federals home loans come with zero down payment, no private mortgage insurance, and benefits for service members and their families. But youll need to join the credit union before applying for a mortgage. To become a member, you or a family member will need to be associated with the armed forces, national guard, or the Department of Defense. If youre eligible, heres what to know about the lender.

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Navy Federal Personal Loans: 2022 Review

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.

Fees Are Similar To Competitors

Navy Federal Credit Union charges a 1% origination fee on the total loan amount on all its mortgages, which is in the 0.5% to 1% range lenders typically charge. So for a $200,000 mortgage, an origination fee of 1% would be $2,000. Alternatively, some lenders charge a flat origination fee regardless of the loans total amount.

We see a lot of lenders charging flat origination fees of around $1,200, though it varies by lender. Considering the same $200,000 from the previous example, you can see how a flat origination fee can sometimes save you money. Calculating the cost of your mortgage is an important step when comparing lenders.

However, Navy Federal Credit Union does offer the chance to waive the origination fee if you agree to pay 0.25% more on the interest rate. In addition, all Choice loans are subject to a 1.75% funding fee. But this too can be waived if you agree to pay an additional 0.375% increase in your interest rate.

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Benefits To Using Navy Federal Credit Union

Navy Federal Credit Union offers plenty of perks to eligible members: a variety of mortgage products, several 0% down and no PMI options and unique programs that help the credit union stand out from the crowd.

  • 0% down and no PMI. Navy Federal Credit Union offers mortgages with no down payment and no PMI.
  • RealtyPlus. Buy or sell a home with a RealtyPlus agent, and you can receive $400 to $8,000 in cash back after you close.
  • Rate match guarantee. Navy Federal Credit Union will match a competitors better rate, or itll give you $1,000 after you close with the competing lender.
  • Freedom lock. New applicants of purchase and refinance loans have the chance to relock their rate within 60 days at a lower rate and at no additional fee.
  • Rate and fee transparency. Navy Federal Credit Union publishes its mortgage rates online and updates them daily. Its publicly available rates and fees sheet can be helpful for borrowers comparing lenders.
  • Favorable customer reviews. Out of the thousands of reviews left by customers online, a majority are overwhelmingly positive.

Other Navy Federal Credit Union Mortgages Available

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Navy Federal Credit Union exists work for service members, eligible veterans, and their families.

And while they specialize in VA loans, they also offer all other mortgage types as well. This can be a major advantage if you need a mortgage for a property type VA loans dont cover.

Two examples are second homes and investment properties.

Other mortgage loans provided by Navy Federal Credit Union include:

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Navy Federal Personal Loans Overview

If you want to consolidate credit card debt, finance a home improvement project, or need money for something else, you may want to consider taking out a personal loan.

If you meet the requirements, , like those offered by Navy Federal, can be a good option because they tend to offer lower interest rates and less fees than other lenders.

For instance, Navy Federal caps interest rates on their personal loans at 18%. In comparison, many online lenders cap their interest rates at 36%.

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