VA streamline refinance calculator Miami Fort Lauderdale Florida
VA IRRRL Payment Calculator
If your current mortgage is a VA loan, you may be eligible to lower your rate, lower your payment, or shorten your loan term with a streamlined VA loan refinance. AKA: VA IRRRL VA streamline refinance calculator Miami Fort Lauderdale Florida
In many cases, lenders will not require an appraisal or income verification. This makes refinancing possible even if you owe more than your home is worth. Calculator Miami Fort Lauderdale Florida.
VA IRRRL Process. Calculator Miami Fort Lauderdale Florida
Each VA lender is different, but most will ask you to provide copies of the following:
- Current Mortgage Statement. Calculator Miami Fort Lauderdale Florida.
- Homeowner’s Insurance Declarations Page Calculator Miami Fort Lauderdale Florida.
- Mortgage Note from Current VA Loan (found in the papers you received at closing) Calculator Miami Fort Lauderdale Florida.
- HUD/Settlement Statement from Current VA Loan (found in the papers you received at closing) Calculator Miami Fort Lauderdale Florida.
The process is generally much easier than traditional refinances. Calculator Miami Fort Lauderdale Florida.
The VA streamline refinance is the quickest, cheapest, and most beneficial type of refinance for veterans who currently have a VA home loan Calculator. VA refinance rates are at historic lows. If you are interested in reducing your interest rate and monthly payment, it’s worthwhile to check current VA streamline rates.
The VA streamline is one of the only refinance programs available in 2016 that allow you to qualify without income or bank account verification. It’s available to those with less than perfect credit. Calculator. It is one of today’s quickest and easiest refinance options. VA streamline refinance calculator Miami Fort Lauderdale Florida
What is a VA Streamline Refinance Loan? Calculator Miami Fort Lauderdale Florida.
The VA streamline helps veterans lower their mortgage rate and payments. When rates are low like they are now, veterans can refinance into a new loan based on today’s rates, and often reduce their monthly payment quickly and easily.
This loan type also called the Interest Rate Reduction Refinancing Loan Calculator (IRRRL) eliminates many of the roadblocks that hold up applicants on other types of refinances. The VA Streamline is much easier because:
No pay stubs or W2s are required Calculator Miami Fort Lauderdale Florida.
No bank statements are required Calculator Miami Fort Lauderdale Florida.
No home appraisal is required Calculator Miami Fort Lauderdale Florida.
There is no loan-to-value limitation because no appraisal or value is required. Calculator Miami Fort Lauderdale Florida.
Underwater homes are eligible Calculator Miami Fort Lauderdale Florida.
The required funding fee is lower than for VA purchase loans Calculator Miami Fort Lauderdale Florida.
Closing costs can be wrapped into the new loan, meaning little or no out-of-pocket expenses Calculator Miami Fort Lauderdale Florida.
Get a VA streamline rate quote here, no obligation. Calculator Miami Fort Lauderdale Florida.
Why is this loan so easy to obtain? Homeowners with a VA loan are more likely to make payments on time if their payments are lower. It benefits everyone when veterans have affordable mortgage payments. Calculator Miami Fort Lauderdale Florida.
Current VA Refinance Rates Calculator Miami Fort Lauderdale Florida.
VA streamline refinance rates are at historic lows. Many Veterans who have purchased or refinanced a VA home loan in the past few years should check today’s VA rates Calculator to make sure they have the absolute lowest rate and monthly payment possible. VA streamline refinance calculator Miami Fort Lauderdale Florida
Eligibility Calculator Miami Fort Lauderdale Florida.
If you’re interested in a VA Streamline (IRRRL) you must currently have a VA loan. Your mortgage professional will pull a Prior Loan Validation from VA’s website to prove current VA loan status. There are some additional requirements.
On-Time Payments Calculator Miami Fort Lauderdale Florida.
In addition, you are required to have made on-time payments over the past year, with no more than one payment that was 30+ days late in the past 12 months. If you did have a late payment, say, 8 months ago, you may want to wait 4 months before applying.
The VA Streamline Refinance Must Improve Veteran’s Situation Calculator Miami Fort Lauderdale Florida.
The VA streamline has to put the borrower in a better financial situation. VA lenders Calculator may only approve streamline refinances that help the veteran.
The new payments on the VA streamline must be lower than your current payments. There are a few exceptions, like when you:
Refinance an adjustable rate mortgage (ARM) to a fixed-rate mortgage. Calculator.
Refinance into a shorter term Calculator.
Finance energy efficient improvements into the VA streamline Calculator.
To prove the benefit of the refinance, your lender will provide you with a form stating the interest rate and payment of your current loan compared to the rate and payment of the new loan. The form will also state how long it will take the refinance to pay for itself. For instance, if the refinance will cost you $3000 in closing costs, but you are saving $300 per month, you will make back the cost of the refinance in 10 months. Be sure to review this form to make sure you are receiving an adequate benefit from the refinance. Talk to one of our VA experts to determine your refinance payback time frame.
Occupancy Calculator Miami Fort Lauderdale Florida.
You must certify that you previously occupied the home that you are refinancing with a VA streamline. Those applying for a VA streamline Calculator are more likely to qualify if they currently live in the home.
There are still instances where you may still qualify if you don’t live in the home. For example, if you lived in the home, then relocated and rented it out, you still may be able to apply for a VA streamline Calculator. Speak with your lender for more information.
VA Streamline Funding Fee Calculator Miami Fort Lauderdale Florida.
The VA funding fee is required on the most purchase and refinance VA loans to defray the costs of the VA home loan program. In most cases, the VA Streamline funding fee is 0.50% of the new loan amount. This fee can be financed into the loan so that the veteran does not have to pay it at the closing of the loan.
Check today’s VA rates. Calculator Miami Fort Lauderdale Florida.
The fee is waived for veterans who are disabled due to service-related injuries. The VA makes this determination and provides it to the lender.
The 0.50% fee is much less than the 2.15% or 3.3% usually required for purchase or VA cash out refinance loans.
Subsequent Use Calculator Miami Fort Lauderdale Florida.
The VA streamline is not viewed as a subsequent use of your VA home loan benefit. You will not incur the 3.3% subsequent use fee because you used the VA streamline refinance program. VA streamline refinance calculator Miami Fort Lauderdale Florida
Entitlement Calculator Miami Fort Lauderdale Florida.
This loan does not use any of your VA home loan entitlement, nor do you have to prove remaining entitlement to obtain a VA streamline. Your remaining VA entitlement after the purchase of the home, if any remains, does not change when you obtain a VA streamline.
Loan Terms and VA Streamlines Calculator Miami Fort Lauderdale Florida.
As discussed previously, your VA loan term may decrease, for instance, from 30 years to 15 years. In this case, it’s OK that your payment increases.
You can also refinance a 15-year loan into a longer term loan. However, keep in mind that the most your loan term can increase is 10 years. So if you currently have a 15-year term, the longest loan you can refinance into will be 25 years.
VA Streamline Q&A Calculator Miami Fort Lauderdale Florida.
Can I refinance my Home if it’s Underwater? Calculator Miami Fort Lauderdale Florida.
Yes. The VA streamline does not require an appraisal; therefore, no value is established for the property. The basis for the loan is the existing VA loan, not the current value of the property.
Do lenders impose additional rules for VA streamlines? Calculator Miami Fort Lauderdale Florida.
Yes. Often, lenders will impose “overlays,” which are additional guidelines on top of VA’s requirements. Each lender has the right to establish their own standards for lending on VA loans.
For instance, the VA Calculator does not require an appraisal or credit report. But almost all lenders require a credit report, and many require an appraisal for a VA streamline. If you are worried about the value of your home or the cost of the appraisal, find a lender who will complete the loan without an appraisal. VA streamline refinance calculator Miami Fort Lauderdale Florida
Do I need my COE for a streamline? Calculator Miami Fort Lauderdale Florida.
No. Your Certificate of Eligibility (COE) is needed for your VA home purchase, but not for a streamline. Since you already have a VA loan Calculator, most lenders will simply request a prior loan validation directly from VA’s website in lieu of a COE. If you have questions about your COE, contact us.
Can I add or remove anyone from the mortgage with a VA Streamline? Calculator Miami Fort Lauderdale Florida.
In some cases, parties can be added or removed. The general rule of thumb is that the veteran who was eligible for the original loan must remain on the loan. The exception is when a spouse and veteran are on the existing loan, and the veteran passes away. In this case, the spouse may be able to refinance with a VA streamline without the eligible veteran.
What if the VA streamline raises my payment? Calculator Miami Fort Lauderdale Florida.
The payment is allowed to rise as a result of the VA streamline in some cases. In the very rare case that the new payment goes up 20% or more because of these features, the lender may ask for full income documentation. Usually, the payment does not raise that dramatically because of the below factors:
ARM to Fixed Rate Calculator Miami Fort Lauderdale Florida.
Because fixed rate mortgage generally have higher interest rates than adjustable rate mortgages (ARMs), your payment may go up. But, often it is a good tradeoff to know that your payment won’t change over the life of the loan like it can with an ARM. VA streamline refinance calculator Miami Fort Lauderdale Florida
Check VA rates today. Calculator Miami Fort Lauderdale Florida.
In some cases, your rate and payment may even go down if your ARM interest rate is higher than today’s low fixed rates.
Shorter Term Calculator Miami Fort Lauderdale Florida.
The VA streamline allows you to refinance from a 30-year loan into a shorter term, such as a 15-year term. In this case, it’s OK for your payment to rise as long as your interest rate goes down. Since shorter term loans pay off faster, payments are bigger than loans with longer terms.
Energy Efficient Improvements Calculator Miami Fort Lauderdale Florida.
As an added benefit, the streamline refinance program allows homeowners to finance up to $6000 in energy efficient improvements for their home. These improvements will save homeowners money over time and are a great option for those who are interested in upgrading and adding value to their home. Some examples of energy-efficient items are programmable thermostats, insulation, solar heating, and caulking/weather stripping. VA streamline refinance calculator Miami Fort Lauderdale Florida
In some cases, the veteran may receive cash at closing of a VA streamline for reimbursement of energy-efficient items. Check with your lender for details.
What if I have a Second mortgage? Calculator Miami Fort Lauderdale Florida.
Second mortgages on VA loans are fairly rare, since VA loans do not require a down payment, and therefore not enough equity exists to obtain a second mortgage.
In the case that there is a second, the new VA loan from a streamline can’t pay it off. A VA cash-out loan would be required. Any additional loans on the property need to be “subordinated,” or put underneath on title, behind the new VA loan.
Can I get cash at closing with a VA streamline? Calculator Miami Fort Lauderdale Florida.
No. VA streamlines are meant only to pay off the existing loan and closing costs. The only exception is when a veteran prepays for energy-efficient improvements and needs to be reimbursed for actual costs.
Should I apply for a VA streamline with my current lender? Calculator Miami Fort Lauderdale Florida.
Although your original lender or current mortgage servicer might be able to do your VA streamline, it is not required. Any VA-approved lender can do your streamline, and it’s best to check with a few lenders to compare interest rates and fees.
Get a personalized rate quote here.
Is VA streamline the same as HARP 2.0? Calculator Miami Fort Lauderdale Florida.
No. HARP 2.0 is a refinance for loans owned by Fannie Mae or Freddie Mac. Fannie/Freddie do not own VA loans, so a HARP loan can’t refinance a VA loan.
Can I refinance my VA loan with a new conventional loan? Calculator Miami Fort Lauderdale Florida.
Yes, if you have enough equity and meet other qualification standards for conventional loans. If you have 20%+ equity in your home, it would be possible to open a new conventional mortgage without a funding fee or mortgage insurance, to refinance the current VA loan. This type of loan would require an appraisal and full income, asset, and credit underwriting. VA streamline refinance calculator Miami Fort Lauderdale Florida
When to Refinance. Calculator Miami Fort Lauderdale Florida.
Many homeowners have considered refinancing their existing mortgages, either to lower their monthly payments or to free up some much need cash. However, following the financial crisis of 2008 (and the ensuing economic downturn) opportunities to refinance an outstanding mortgage became increasingly limited. Lenders who had formerly been eager to offer refinancing deals began to find themselves under intense scrutiny from both their shareholders and the government, and loans for all but the most exceptional borrowers became increasingly difficult to secure. Fortunately, with the economy on the rebound, lenders are once again loosening their purse strings, and it is becoming easier for qualified customers to obtain a new mortgage. So much so, that many lenders are now offering ‘streamlined refinancing’ options for qualified borrowers. VA streamline refinance calculator Miami Fort Lauderdale Florida
There is a general rule in the industry that states that if the present interest rate is lower than the mortgage by two percentage points, refinancing can make sense. Some streamline refinancing options remove some of the costs and friction from the refi process & can make a far smaller rate move still rather compelling for borrowers. And while streamline programs may lower costs, homeowners also need to see other competitive rates in order to determine if the streamline programs they are offered are not only easier than a typical refinance, but also if they are competitive with the best rates offered at other financial institutions. Here is a rate table highlighting current rates in your area.
What Is Streamline Refinancing? Calculator Miami Fort Lauderdale Florida.
Anyone who has tried to refinance their existing mortgage understands just how rigorous the application process can be, particularly if it involves changing lenders. Streamlined refinancing aims to simplify the process, reducing the paperwork and fast-tracking the new loan so borrowers can save time as well as money. Often there is no credit check involved, limited asset and earnings verification, and in many cases, there will be no need for a new appraisal of the applicant’s property. The lender essentially relies on the information submitted with the original mortgage application and bases the refinance agreement on those stats. This effectively speeds up the process and, for many homeowners, increases the likelihood of approval. VA streamline refinance calculator Miami Fort Lauderdale Florida
The primary benefits of streamlined refinancing include:
- Minimal credit requirements Calculator Miami Fort Lauderdale Florida.
- Limited asset and income verification Calculator Miami Fort Lauderdale Florida.
- No appraisal required Calculator Miami Fort Lauderdale Florida.
- Reduced paperwork Calculator Miami Fort Lauderdale Florida.
- Lower closing costs Calculator Miami Fort Lauderdale Florida.
- Faster loan processing Calculator Miami Fort Lauderdale Florida.
Of course, streamline mortgage refinance does have its own set of rules and regulations that are meant govern both lender and borrower, and while the application process is greatly simplified it does not guarantee approval Calculator Miami Fort Lauderdale Florida. First and foremost, the refinancing agreement must demonstrate a ‘net tangible benefit’ to the borrower. In other words, it should provide substantial savings for the homeowner that supersedes any costs related to refinancing and should not merely be a vehicle for increased profit on the part of the lender. Calculator Miami Fort Lauderdale Florida. Secondly, there can be no cash payout for the borrower as often occurs with traditional mortgage refinancing. Streamline refinancing exists only to reduce the burden of an outstanding mortgage, and cannot be used by borrowers to raise ready cash. VA streamline refinance calculator Miami Fort Lauderdale Florida
There are three basic types of streamline refinancing to be aware of, each with their own set of rules and regulations:
- FHA Streamline Mortgage – Available to homeowners with an existing FHA-backed mortgage Calculator Miami Fort Lauderdale Florida.
- VA Streamline Refinancing Loan – Available to active military, reservists, and veterans holding a VA backed home loan Calculator Miami Fort Lauderdale Florida.
- HARP Streamline Refinance – HARP and HARP 2.0 are streamlined loan programs available to underwater homeowners. Calculator Miami Fort Lauderdale Florida.
When shopping for a streamline refinance, whether FHA, VA, or HARP, it is important to choose a lender with experience administering this particular mortgage product. Many banks do offer refinancing opportunities for eligible borrowers, but they may not necessarily fall into the ‘streamline refinance’ category.
FHA Streamline Refinance. Calculator Miami Fort Lauderdale Florida.
FHA streamline refinance is a specific mortgage product reserved for homeowners with an existing FHA-insured mortgage. The program offers a fast and easy way for homeowners to refinance their outstanding mortgages at today’s, often more forgiving, interest rates. FHA refinance mortgages come in both 15 and 30-year terms, and are available at either fixed or adjustable interest rates. One of the most important features of the program is that it is available to all qualified FHA mortgage holders, including those with minimal equity in their homes as well as those who may be currently underwater with their loans.
Some of the defining characteristics of FHA streamline refinancing include the following:
- No Verification of Income or Assets – Applicants are not required to verify current employment, annual income, or actual assets as long as the borrower meets all other FHA requirements. Calculator.
- No Credit Check – The FHA does not use the applicant’s current credit score as a determining factor in granting a refinance loan. Instead, they rely on the borrower’s existing mortgage payment history. Calculator.
- No Property Appraisals Required – The FHA uses the original purchase price of the applicant’s home, or the most recent appraisal value, do determine the valuation of the refinance loan. Even homeowners who are underwater, or who lack equity in their home, can be approved for a streamline refinance mortgage. Calculator.
- Payment History – To qualify for an FHA refinance loan, applicants must demonstrate a perfect 3-month payment history on their existing mortgage. One late payment within a 12-month period is allowable. VA streamline refinance calculator Miami Fort Lauderdale Florida
- 210 Day Waiting Period – To be eligible for a streamline refinance, borrower’s must have made at least 6 payments on their existing mortgage, and no less than 210 days can have passed since the original closing date. Calculator.
- Applicants Must Demonstrate a Net Tangible Benefit – To qualify for FHA refinancing, borrowers must be able to prove that the new loan will lower the cost of their mortgage significantly, either by lowering the interest and insurance costs or by switching from an adjustable rate to a fixed-rate loan. Taking ‘cash-out’ to pay bills is not considered a Tangible Net Benefit, and is not allowed under FHA guidelines. Calculator.
- New Loan Balance Shall Not Include Loan Costs – The borrower’s new loan balance is limited to current principle balance + the upfront mortgage insurance payment. All other costs, including origination fees, title charges, and escrow population, must be paid by the borrower in cash at the time of closing. (Some banks do offer no-cost FHA refinancing; in which they waive the fees associated with the new loan. However, these typically result in higher interest rates and larger monthly payments for the borrower.) VA streamline refinance calculator Miami Fort Lauderdale Florida
- Mandatory Insurance Requirements – Approved borrowers are required to make two types of mortgage insurance payments, a single upfront payment at closing and an annual payment of broken down into 12 monthly installments. VA streamline refinance calculator Miami Fort Lauderdale Florida
VA Streamline Refinance Calculator.
VA streamline refinance, sometimes referred to as the Interest Rate Reduction Refinance Loan (IRRRL), is a specific mortgage product only available to active members of the military, reservists, and veterans with an existing VA home loan.
The VA’s program shares many of the same features as the FHA refinancing program, with a few major exceptions. With the VA streamline refinance borrowers are allowed to roll closing costs into the total cost of their new loan, allowing veterans and active military personnel to refinance with no out-of-pocket expenses. The VA’s streamline refinancing program also allows borrowers to take advantage of a cash-out option for the purpose of making energy efficient improvements to their property. Finally, unlike other streamline refinance programs, homeowners with a VA mortgage may take the opportunity to change lenders provided the new lender is VA-approved and can offer a lower interest rate. VA streamline refinance calculator Miami Fort Lauderdale Florida
Those wishing to take advantage of a VA streamline refinance must meet the following requirements:
- Applicants must be current with their existing mortgage, having no more than one late payment (under 30 days) in a 12-month period. Calculator.
- The borrower’s new monthly payments must be demonstrably lower than with their existing loan. (This condition does not apply if refinancing results in the switch from an adjustable rate mortgage to a fixed rate mortgage. Calculator.
- Borrowers may not receive a cash-out allowance except for the purposes of home improvements, and any payments will be made 90 days after work has been completed and proof of costs submitted. Calculator.
- Applicants must be able to certify that they are currently occupying the property, or have occupied the property within the last six months. Calculator.
- Applicants must have previously used their VA loan eligibility on the property being refinanced. (The information from the existing loan will be used to determine the valuation of the new mortgage) Calculator.
- The amount of the refinanced VA loan will be limited to the existing loan balance plus late fees and typical closing costs. VA streamline refinance calculator Miami Fort Lauderdale Florida