The VA Streamline Refinance

Also known as Interest Rate Reduction Refinance Loans or IRRRL, the VA Streamline Refinance program works to help existing VA mortgage holders lower their interest rates and reduce their monthly mortgage payments. Those with adjustable rate VA mortgages who wish to refinance their current home loans to a fixed rate loan may find this VA loan program quite beneficial. Those who already hold fixed rate loans may be able to reduce their payment amounts drastically, as interest rates have dropped to help boost the economy. This program is very low cost to the veteran and requires much less paperwork than a standard VA refinance.

One of the benefits of this program was that there was no appraisal required, however in recent months most lenders have changed their guidelines on the IRRRL program to require an abbreviated appraisal to protect themselves against the current drop in home values..

Lock in Historically Low Interest Rates

With interest rates at an all time low, there really has never been a better time to utilize this benefit. Rates have dropped to help boost our nation’s economy and although they are extremely low currently, we do expect them to rise as the economy recovers. If you are currently utilizing the VA Loan on your home, this is an incredible opportunity for you to save literally tens of thousands of dollars in interest payments over the term of your VA Loan.

Less Credit Restrictions

The credit guidelines are simple, if you have a 620 FICO score and have made timely payments for the last 12 months, you qualify for the VA Streamline Refinance. At one time, there was no credit score requirement, however again, in order to protect their assets, banks have put in place new credit guidelines to insure they are lending money to a qualified buyer that has the ability to repay the loan. Even with these recent credit guidelines, it is still easier to qualify for this VA loan product over conventional and FHA refinance options.

No Out-of-Pocket Expense at Closing

Another advantage to the IRRRL is that there is no money out of pocket expense at closing. There are always losing costs associated with a refinance or purchase transaction. On the IRRRL, most of these costs are paid by the lender and any remaining costs such as title insurance, per diem interest, and tax and insurance escrow fees are rolled back into your current balance. So, you may have a slight increase in you loan amount, however with a lower interest rate, you are able to save money on a monthly basis and recoup those costs in a matter on a year or so. Our team will be happy to give you a personalized scenario of the costs on your VA Streamlined Refinance.

No Pre-Payment Penalty

A prepayment penalty is a monetary penalty enforced upon a borrower when he or she pays a loan off earlier than was originally agreed. Lenders enforce a prepayment penalty in order to guarantee they make a certain amount of money from loaning money to a borrower. The VA Refinance does not have a pre-payment penalty. This allows you to pay off your loan whenever you choose without having to come up with additional money like on many conventional loan products.

No Income or Asset Verification

One of the main advantages of the VA Streamlined Refinance is that it does not require income and asset verification. Although you must be able to verify employment, you are not required to provide current paychecks or bank statements. This means that there is much less paperwork that you need to provide, making it much easier during the underwriting and closing portion of your refinance.

What you will need…

Below is a list of documentation that you will need for your refinance. We will be more than happy to assist you in obtaining this documentation if you don’t already have it.

• NOTE from previous closing
• Current Tax Statement
• Current Mortgage Statement
• HUD-1 form you previous closing
• Copy of your Survey

As you can see, the VA Streamlined Refinance has many advantages over a full documentation Conventional or FHA Refinance. From less paperwork to no Pre-Payment Penalty, this program can save you literally tens of thousands of dollars in interest payments on your current mortgage. Call us today or simply click HERE to get started. One of our dedicated team is ready to go over all of your refinance options.