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Jerad Brereton

Loan Originator |NMLS 1769648

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Meet Jerad!

As your trusted UMortgage Loan Originator, my goal is to simplify the mortgage process to make your home loan experience easy to navigate! Please reach out so I can help start your home financing journey.

Serving Homebuyers In:

  • Arizona
  • Arkansas
  • California
  • Colorado
  • Connecticut
  • Florida

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VA Entitlement & Payments

Your Mortgage Questions, Answered!

Your Guide to VA Interest Rate Reduction Refinance Loans (IRRRLs)

Understanding VA Interest Rate Reduction Refinance Loans (IRRRLs) If you're a military homeowner with a VA home loan, you may be able to lower your monthly payments through a VA Interest Rate Reduction Refinance Loan (IRRRL). A VA IRRRL, often called a "VA Streamline Refinance," is a simplified way for veterans to refinance their existing VA-backed home loan. This program allows you to replace your current VA loan with a new one, typically offering a lower interest rate or more stable payment terms. Below, we’ll outline the benefits you can unlock with an IRRRL, the requirements to meet before you qualify for an IRRRL, and what the process looks like to unlock these savings. Benefits of a VA IRRRL With an IRRRL, homeowners can unlock countless benefits to save money both immediately and in the long term. The primary benefit of an IRRRL is to replace your existing mortgage with one that has a lower interest rate, thus lowering your monthly mortgage payment and interest paid over the life of the loan. Unlike traditional refinances, IRRRLs require very minimal documentation, making the process move a lot quicker than a conventional refi. Homeowners can often get an IRRRL without paying any cash out of pocket by rolling closing costs and fees into the loan balance. This means you’re saving money from your first new payment. If you bought your home with a VA loan, you’re probably familiar with the VA funding fee. The good news with an IRRRL is that when you refinance, non-exempt borrowers only have to pay a 0.5% funding fee. This fee can also be added to the loan balance, meaning no money out of pocket at closing. Finally, a VA IRRRL doesn’t use any of your VA loan entitlement, ensuring that you’re set up for success if you have entitlement remaining when the time comes to buy your next home. How to Know When You’re Ready for an IRRRL Before you get an IRRRL, you need to check the three boxes outlined below to make sure that you maximize these benefits: 210 Days Since the First Payment on the Original VA Loan First and foremost, your closing date for your new loan needs to be at least 210 days after you made your first payment on the loan that you’re refinancing, and you must have made at least 6 consecutive monthly payments on that loan. These requirements are set by law to protect you from predatory lending practices. Qualify for a Rate at Least 0.5% Lower Than Your Current Rate Second, the interest rate you qualify for needs to be lower than your existing interest rate by at least 0.5%. Refinancing includes additional costs such as closing costs, title fees, and other associated charges. If the interest rate reduction is too small, the monthly savings might not be enough to recover these upfront costs in a reasonable time frame. By waiting for a 0.5% or greater rate reduction, you increase the likelihood that the savings from refinancing will recoup these costs relatively quickly. Recoup Your IRRRL Costs Within 36 Months That takes us to the final and most important requirement. To make your IRRRL worthwhile, you need to make sure you recoup these additional costs via your new, lower monthly payment in 36 months. These three requirements act in tandem with each other. Rates take a combination of economic conditions and time to drop by at least 0.5%. The more you reduce your interest rate, the faster you’ll recoup the savings unlocked with your IRRRL. With all things related to your mortgage, it’s important to work with a Loan Originator who will help you get the most out of your IRRRL and can find a solution that keeps more of your money in your pocket. That takes us right into step 1 of the IRRRL process: working with a loan originator who can guide you through your IRRRL without slamming you with unnecessary added fees. The IRRRL Process: Streamlined Refinancing Getting an IRRRL is generally simpler than a regular refinance. Below, we’ll outline the easy, 6-step process for getting an IRRRL: Find an experienced VA loan originator: By working with an experienced LO, you will ensure that you’ll receive honest and straightforward financial advice with a personalized IRRRL experience that provides terms that work best for you and you alone. Provide basic information: You'll need to certify that you previously occupied the home, but current occupancy isn't required. Skip the appraisal: In most cases, no new appraisal is needed for an IRRRL. Minimal credit checks: While the VA doesn't require a credit check, some lenders may still request one. No income verification: Unlike regular refinances, IRRRLs typically don't require income documentation. Close on your new loan: Once approved, you'll sign the new loan documents and start enjoying your lower payments. Remember, while IRRRLs are designed to be straightforward, you need to ensure that the new loan provides a tangible benefit, such as lower monthly payments or a more stable rate structure. Taking advantage of a VA IRRRL allows you to save money on your monthly mortgage payments while enjoying a simplified refinancing process. If you're interested in exploring this option, make sure you start with an experienced lender who understands the ins and outs of VA loans to discuss your specific situation and potential savings.

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Housing Market Update | Week of September 23rd

I hope you had a great weekend! Last week was a big one for the economy as the Federal Reserve surprised many with a 50bps cut to the Federal Funds Rate. Rates rose slightly in the immediate aftermath of Jerome Powell’s press conference but have since dropped slightly to reach a new low in 2024. Whether rates continue to drop for the remainder of the year depends on upcoming labor data and mortgage spreads. Last Week's Mortgage Rate Recap Rates Dropped Slightly Last week’s highly anticipated Fed Meeting resulted in the Federal Reserve slashing the Federal Funds Rate by 50bps. Mortgage rates rose immediately after Powell’s press conference, then slowly trickled lower on Thursday & Friday and into the new week. This rate cut was already priced into current mortgage rates, hence the immediate rise after the cut was confirmed. This Week's Mortgage Rate Forecast Rates Should Stay Steady Mortgage rates will likely remain in the current range for the time being, with the potential for slight drops with specific economic information. Today, we will hear from 3 different Fed presidents; any hint at their policy moving forward could shift the market slightly. This week’s biggest data point is Friday’s PCE report, though the Fed has emphasized that the labor market will largely dictate their stance during the next Fed Meeting in November. There are plenty of different factors that will determine whether or not rates continue to drop in the immediate future. For more technical analysis to share with your prospective buyers, check out a replay of today's Fed-focused Monday Market Update.

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How to Navigate My Refinance Calculator

Refinancing your home can be a smart financial decision, but it’s important to understand how it could impact your mortgage payments. UMortgage’s Refinance Calculator is a helpful tool that gives you an estimate of your potential savings or costs when refinancing your mortgage. Before you start plugging your information into our refinance calculator, let’s get you up to speed on the finer details of refinancing and the use cases for each section of our calculator. You can check out this refinancing guide for a high-level overview of what a refinance is, what your options are, and what fees you will see before you close. After you’re up to speed on refinances, below is our guide explaining how to use the calculator and what each section means. Step 1: Decide What Kind of Refinance You Want There are many different reasons to refinance your mortgage. The most common reason is to lower your monthly mortgage payment if interest rates have gone at least 0.5% lower than the rate on your original mortgage or lower your total cost owed on the loan with either a lower interest rate or a shorter loan term. Additionally, as you pay your monthly mortgage payment, you’re naturally earning equity over time. With a cash-out refinance, you can take some of that equity and put it back in your pocket to use however you wish. This route is most common for homeowners who want to consolidate other debts or utilize the funds for various high-cost expenses like home renovations. The type of refinance that you choose will impact things like your monthly mortgage payment, the total amount owed on your new mortgage, and/or the length of time that you have to pay your new mortgage. Step 2: Enter Your Original Loan Details The first section of the calculator requires information about your current mortgage. You’ll need to enter the following details: Original Loan Amount: The total amount you borrowed when you first took out the mortgage. Loan Term: The original length of your loan, typically 15 or 30 years. Interest Rate: The interest rate of your current mortgage. Year of Origin: The year when you took out your original mortgage. These details help the calculator understand the structure of your current mortgage and estimate your remaining balance. Step 3: Enter Your Desired Refi Details In the second section, you’ll be asked to input details about the refinance that you’re considering. A few of these details are automatically populated, but the bullet points below quickly outline the areas that you can customize and what to consider when you enter figures into these boxes. New Loan Term: The length of time you’d like for the refinanced mortgage (e.g., 15 years, 30 years). A longer loan term will accrue more interest owed on the loan over time but will lower the amount owed each month. Inversely, a shorter loan term means you pay less interest over the life of the loan but have a higher monthly payment. Cash-Out Amount: If you’d like to take out equity from your home during the refinance, enter the amount here. Cash-out refinances allow you to pocket some of the equity you’ve built up over the years to put towards things like home renovations or debt consolidation. Three of the boxes in the “Refinanced Mortgage” section will vary based on current economic conditions or the information input in the “Original Mortgage” section. First is your refinanced mortgage loan amount. This figure is an estimate that's automatically calculated by the details in the “Original Mortgage” table above. If you know your exact loan balance, click the “Custom Loan Amount” switch at the bottom of the calculator and fill it in this box for a more accurate estimate. The refinanced interest rate will automatically populate based on today's rates and is subject to change depending on your credit score and other factors. Closing costs are also auto-populated based on your loan amount. Closing costs typically range between 2-6% of your total loan amount. How to Read Your Results Once you’ve entered both your original mortgage details and your desired refinance terms, the calculator will provide you with an estimate of your refinanced mortgage. The table on the right side of the page will outline your potential monthly savings and your total savings across the refinanced loan term. Beneath those figures, you can see a breakdown of your principal (outstanding balance of your loan, not including interest), interest (the amount owed to the lender for the use of borrowed money), and your total cash savings which adds up the combined principal and interest owed across the life of the loan. It is important to note that this calculator exists to provide you with a rough estimate of your refinance. Factors such as interest rate and closing costs can vary, so for a more accurate look at what a refinance might look like for you, reach out to your UMortgage Loan Originator. Ready to Learn More? The Refinance Calculator is a great starting point to explore your refinancing options, but it’s not the final word. Reach out to your UMortgage Loan Originator today to get a personalized quote that fits your unique situation and financial goals.

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