VA Loan Refinance No Closing Cost Miami Fort Lauderdale, Florida
VA Loan Refinance No Closing Cost is when you replace your Miami and Fort Lauderdale, Florida house VA Loan for a new loan, with the purpose to obtain a lower mortgage loan interest rate, decrease your mortgage loan monthly payments, or shorten the term of your loans by a streamline refinance or Cash-Out refinance. VA Loan Refinance No Closing Cost
So if you are a Miami and Fort Lauderdale, Florida veteran with a VA Loan and you’re having some problems to make your VA Loan payments on time, or you notice that your neighbors have a better mortgage loan interest rate than you, and you will like to reduce your monthly payments, or you require additional cash for a real need. Whatever is your case you should know that VA offers you a great loan program call VA loan refinance no closing cost here in Miami and Fort Lauderdale, Florida, which allows you to save more of your hard-earned money in your own pocket, with lower mortgage loan rates and flexible underwriting standards. VA Loan Refinance No Closing Cost
What makes VA loans so attractive when refinancing is the flexible requirements and higher refinancing and cash-out refinancing amounts than many conventional loans. This allows more homeowners, especially those who are in difficult housing and financial markets to refinance their mortgage loan. But like the other loans for buying a house comes with cost and fees.
This cost that the VA Loan Miami and Fort Lauderdale, Florida applicants have to pay are known like closing costs, which represent the actual cost of doing a loan, and they can come in different forms. A loan closing costs can be adding into the cost of the loan, allowing Miami and Fort Lauderdale, Florida veterans to refinance without expenses. Sometimes it is also possible for the VA Loan lender to take the brunt of the cost in exchange for a higher mortgage loan interest rate on your loan.
Below is presented a description of the types of closing cost, that you should know first:
Allowable VA Closing Costs in Miami and Fort Lauderdale, Florida
Reasonable closing costs may be charged by the VA Loan lender. These costs may not be included in the loan. The following items may be paid by the veteran buyer, the seller, or shared. Closing costs may vary among lenders and also throughout the nation because of differing local laws and customs. The different closing cost is:
- Prepaid Finance Charges (PFC) Items are items which the buyer has to pay in advance. Lenders require insurance policies and taxes to be paid in advance and can include things such as Escrow for prepaid interest, property taxes, homeowner insurance, flood insurance, The VA Funding Fee, homeowners Association Dues if applicable, discount points, and 1% origination fee.
- Third party fees or Paid outside closing (POC) costs: Companies involved in the transaction other than the lender are called third parties and their charges are called third party fees. These costs aren’t factored into your overall financing, but they still have to be covered. Here are some common fees: Appraisal, title examination, title insurance, recording fee (public record, taxes), credit report and the survey of the property.
Non-Allowable Closing Costs in Miami and Fort Lauderdale, Florida
There are plenty of other potential costs and fees the VA does not allow homebuyers to pay. Minimizing closing costs remains one of the biggest VA loan benefits. These items cannot be charged in lender’s flat 1% fee. Here are some non-allowable closing costs:
- Lender document fees.
- Recording fee above $17.
- Notary fees.
- Transaction Coordinator fees.
- Broker fees.
- Loan closing, settlement, application, or processing fees.
- Preparing loan papers or conveyance fees.
- Attorneys services other than for title work.
- Interest rate lock – in fees.
- Postage and other mailing charges, stationery, telephone calls, and other overhead.
- Amortization schedules.
- Pass books, and membership or entrance fees.
- Escrow fees or charges.
- Preparation and assignment of the mortgage to other secondary market purchasers.
- Trustee’s fees or charges.
- Fees for preparation of truth-in-lending disclosure statement fees charged by loan brokers, finders or other third parties.
- Tax service fees. VA Loan Refinance No Closing Cost
How to Get a No Closing Cost Refinance in Miami and Fort Lauderdale, Florida?
Oftentimes Miami and Fort Lauderdale, Florida veterans believe that closing costs are covered by the VA mortgage. While that is not technically true. Here are some ways to get a VA Loan Refinance no closing cost refinance:
Lenders have a couple of options when it comes to the costs related to originating and processing your loan. They can charge a flat 1 percent origination fee (along with the other normal charges up to a reasonable amount) or skip the flat rate and charge fees on an individual basis, as long as the total dollar amount doesn’t exceed that same 1 percent of the loan amount. VA Loan Refinance No Closing Cost
The lender will be able to offer you a VA streamline refinance no out of pocket closing costs or no out of pocket costs, where all the closing costs are rolled into the loan in exchange for a slightly higher rate on your loan, then you don’t have to bring any money to closing. This is fairly common with the VA streamline program. But you cannot get cash back at closing. When you see a lender advertise a no closing cost VA streamline refinance, you need to be more careful, because sometimes no closing cost lenders often are mislabeled and should be called no out of pocket closing cost lenders because they roll your refinancing costs into the loan. So, you might get a 3.5 percent interest rate if you pay closing costs, but a 3.9 percent rate if you don’t. Other times, the mortgage company will simply add all of the closing costs, tax, and insurance escrow onto your total mortgage balance, giving you a bigger total mortgage bill. VA Loan Refinance No Closing Cost
When is Better to Pay Closing cost?
If you plan to stay in the home long-term, it is usually a good idea to go ahead and pay the closing costs and take the lower interest rate or lower total loan balance. The reason: Over the long term, you’re likely to pay more in interest than you would have in closing costs. The no closing cost refinance can make sense for some people in general, those who don’t plan to stay in their homes for more than five years or who will probably refinance again soon. In this instance, the slightly higher monthly interest payments they will pay usually won’t end up exceeding the amount they would have paid in closing costs, assuming they sell the house (or refinance) within about five years. VA Loan Refinance No Closing Cost
Obviously, each buyer will need to do his or her own math on this by determining how long they want to stay in the home and what the higher mortgage interest payments would be over that period vs. what the total closing costs would be. A no closing cost refinance can also make sense for people who need to do renovations in their home but don’t have the cash to do them. You may get a better deal by taking the slightly higher interest rate (or adding on to your loan balance, which would also mean you have higher interest payments each month) on the refinance loan than you would on taking out a home equity loan. (This, obviously, depends on interest rates for both loans). VA Loan Refinance No Closing Cost