VA Streamline Refinance Loans
Refinancing your VA Home Loan provides the opportuniy to reduce your current interest rate and monthly payment without paying any closing costs. VA refinancing does not require a new appraisal and you don’t have to re-qualify for the VA Home Loan as long as your monthly mortgage payments have been made on time. A VA refinance is a very simple and fast process.
The VA loan program was instituted in 1944 and is one of the most popular mortgage finance options in the United States to this day. VA loans are backed by the U.S. Department of Veterans Affairs and allows our veterans access to multiple home loan options without requiring a down payment or paying monthly private mortgage insurance.
What Is a VA Streamline Refinance?
A VA IRRRL (pronounced “Earl”) is referred to as a VA Streamline. Lenders use the term “VA Streamline” to imply that the refinance process is simpler and faster than a typical refinance.
VA Streamline refi’s can help you move from an adjustable rate mortgage to a fixed-rate mortgage, lower your monthly interest rates, lower your monthly payments, and/or change your payment terms. You must have an existing VA Home Loan to do a VA Streamline refinance.
How Does A VA Streamline Refinance Work?
The VA has strict rules on refinancing your VA Home Loan. You can only refinance if your new VA Home Loan terms provide you with an immediate financial benefit, for exxample, a lower interest rate, or a lower monthly payment.
What Stays The Same?
Your home: You may change mortgage lenders, not your actual property.
Potentially, your mortgage re-payment length: VA Home Loan refinances are flexible, and there’s no rule that says you must extend your mortgage terms. If you’re already a few years into your VA Home Loan, you may choose a new plan without altering your mortgage payment terms, as long as your new VA lender offers you a flexible terms option.
It’s important to note that you must wait 270 days from the closing of your original VA Home Loan in order to apply for the VA Streamline refinance. You must also have made a minimum six consecutive monthly payments on your current VA Home Loan, and there must be a total of 210 days between your first mortgage payment and the closing on the VA Streamline refinance loan.