VA streamline refinance Miami Fort Lauderdale Florida
Interest rates have been rising for the past few months, but it still may be possible to reduce the interest rate on your current VA mortgage Miami Fort Lauderdale Florida with an Interest Rate Reduction Refinance Loan (IRRRL). VA streamline refinance Miami Fort Lauderdale Florida
Given today’s rates, which are near the record lows seen late last year, now may be a good time to look at an Interest Rate Reduction Refinance Loan Miami Fort Lauderdale Florida. Here are several questions to ask before refinancing.
First, what is the VA an Interest Rate Reduction Refinance Loan? An Interest Rate Reduction Refinance Loan is essentially a quick refinance Miami Fort Lauderdale Florida. It can allow vets and military families to refinance existing loans to a lower rate or convert from adjustable to fixed-rate financing without a lot of paperwork or hassles. Unlike most loan products, there is no appraisal requirement, the usual documentation is unnecessary and a new Certificate of Eligibility (COE) is not required Miami Fort Lauderdale Florida. VA streamline refinance Miami Fort Lauderdale Florida
Second, what’s the difference if you refinance Miami Fort Lauderdale Florida? The difference must be enough to give you a real benefit such as monthly payment savings or a fixed rate rather than an interest level that adjusts. VA streamline refinance Miami Fort Lauderdale Florida
Third, what is the VA an Interest Rate Reduction Refinance Loan Funding Fee Miami Fort Lauderdale Florida? For most VA borrowers there’s a .5 percent Funding Fee. However, the VA Funding Fee can be waived in certain cases, such as vets with a service-connected disability, those entitled to receive compensation for a service-connected disability who did not receive retirement or active duty pay, and the surviving spouse of a veteran who died in service or from a service-connected disability.
Fourth, what is your other closing costs Miami Fort Lauderdale Florida? These will vary according to where you live and the size of your loan.
Fifth, would it make sense to go from 30-year financing to a loan with a 15-year term Miami Fort Lauderdale Florida? This can be done with an Interest Rate Reduction Refinance Loan. The lifetime interest cost of a shorter loan will be less than a 30-year mortgage, however — and this is a big catch — the monthly payment for the 15-year loan can be significantly higher. Look at both the monthly payments and lifetime interest costs to see if a mortgage with a shorter-term would be attractive in your situation.
Sixth, an Interest Rate Reduction Refinance Loan Miami Fort Lauderdale Florida is generally a form of refinancing where no cash-out is allowed. However, as much as $6,000 in additional money may be borrowed to cover the cost of energy improvements completed within 90 days before closing. Ask your lender for details.
The VA says the “occupancy requirement for an Interest Rate Reduction Refinance Loan Miami Fort Lauderdale Florida is different from other VA refinance loans. For an Interest Rate Reduction Refinance Loan, you need only certify that you previously occupied the home.” In other words, you may be qualified for an Interest Rate Reduction Refinance Loan even though you do not currently occupy the property. Conceivably, a home bought as a prime residence and later converted to use as a rental could qualify for an Interest Rate Reduction Refinance Loan Miami Fort Lauderdale Florida. Again, ask your lender for details.
Interest rates today are not far from historic lows. VA refinances an Interest Rate Reduction Refinance Loan benefits Miami Fort Lauderdale Florida can lead to monthly savings or a fixed-rate loan which can be a good deal for many qualifying vets and military families. At least it’s worth a look. VA streamline refinance Miami Fort Lauderdale Florida
The VA refinance streamline refinance is the quickest, cheapest, and most beneficial type of refinance for veterans who currently have a VA home loan refinance Miami Fort Lauderdale Florida. 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 refinance streamline rates.
The VA refinance 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. It is one of today’s quickest and easiest refinance options. VA streamline refinance Miami Fort Lauderdale Florida
What is a VA Streamline Refinance Loan 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 (an Interest Rate Reduction Refinance Loan Miami Fort Lauderdale Florida) 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 Miami Fort Lauderdale Florida
- No bank statements are required Miami Fort Lauderdale Florida
- No home appraisal is required Miami Fort Lauderdale Florida
- There is no loan-to-value limitation because no appraisal or value is required. Miami Fort Lauderdale Florida
- Underwater homes are eligible Miami Fort Lauderdale Florida
- The required funding fee is lower than for VA refinance purchase loans Miami Fort Lauderdale Florida
- Closing costs can be wrapped into the new loan, meaning little or no out-of-pocket expenses 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. VA streamline refinance Miami Fort Lauderdale Florida
Current VA Refinance Rates Miami Fort Lauderdale Florida
VA streamline refinances 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 to make sure they have the absolute lowest rate and monthly payment possible.
Eligibility refinance Miami Fort Lauderdale Florida
If you’re interested in a VA Streamline (an Interest Rate Reduction Refinance Loan) 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. VA streamline refinance Miami Fort Lauderdale Florida
On-Time Payments 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
The VA streamline has to put the borrower in a better financial situation. VA lenders 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. Miami Fort Lauderdale Florida
- Refinance into a shorter term Miami Fort Lauderdale Florida
- Finance energy efficient improvements into the VA streamline Miami Fort Lauderdale Florida
In all cases except for an ARM refinancing into a fixed rate, the interest rate must decrease.
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 Miami Fort Lauderdale Florida. VA streamline refinance Miami Fort Lauderdale Florida
Occupancy 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 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. Speak with your lender for more information. VA streamline refinance Miami Fort Lauderdale Florida
VA Streamline Funding Fee 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. 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 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.
Entitlement 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 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. VA streamline refinance Miami Fort Lauderdale Florida
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.
Apply for a VA Streamline Miami Fort Lauderdale Florida
VA Streamline Q&A Miami Fort Lauderdale Florida
Can I refinance my Home if it’s Underwater? 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? 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 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.
Do I need my COE for a streamline? 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, 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. VA streamline refinance Miami Fort Lauderdale Florida
Can I add or remove anyone from the mortgage with a VA Streamline? 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. VA streamline refinance Miami Fort Lauderdale Florida
What if the VA streamline raises my payment? 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 rise that dramatically because of the below factors:
ARM to Fixed Rate 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 trade off to know that your payment won’t change over the life of the loan like it can with an ARM.
Check VA rates today. 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 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 Miami Fort Lauderdale Florida
As an added benefit, the streamline refinances 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 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? 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. VA streamline refinance Miami Fort Lauderdale Florida
Can I get cash at closing with a VA streamline? 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? 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.
Is VA streamline the same as HARP 2.0? 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? 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.
Check today’s VA streamline rates. Miami Fort Lauderdale Florida
What are the closing costs on a VA streamline? Miami Fort Lauderdale Florida
Closing costs vary greatly from lender to lender. Borrowers should shop around to find the best interest rate and closing cost combination for them. There are certain closing costs the veteran can and cannot pay on a VA loan. For an in-depth look at closing costs, see our closing cost page. Generally, rules for VA streamline closing costs are the same as for purchase closing costs, except that the veteran may not finance more than two discount points (2%) into the new loan. Discount points are points paid to reduce the interest rate. For a closing cost quote based on your specific situation, contact a licensed VA lender. VA streamline refinance Miami Fort Lauderdale Florida
Can the lender pay my closing costs instead of including them into the new loan? Miami Fort Lauderdale Florida
In some, cases, the lender can give you a higher interest rate and pay your closing costs, and sometimes even your funding fee. The closing costs aren’t added to the loan amount; the lender pays them for you by using the excess profit from the loan. Usually, this works best when rates are very low, or if you currently have a high-interest rate. In these cases, you lower your rate substantially, despite the rate hike given to you to pay for fees. VA streamline refinance Miami Fort Lauderdale Florida
Check today’s rates. Miami Fort Lauderdale Florida
For instance, if market rates are 4.0%, your lender might give you a 4.25% rate and pay all your closing costs. You still end up with a great rate and don’t add many principles to the loan balance. This isn’t always an option, though, and often closing costs need to be wrapped into the new loan or paid in cash.
Can I skip a payment by getting a VA streamline? Miami Fort Lauderdale Florida
No payments can be skipped. Sometimes, depending on the closing date of the new loan, it appears that a payment has been missed because the previous or subsequent month’s interest was wrapped into the new loan. However, the VA does not condone this practice as a method to “skip” a payment. The VA lender should not coach the borrower to structure a refinance in this way. VA streamline refinance Miami Fort Lauderdale Florida
How do I know if market rates are lower than my current rate? Miami Fort Lauderdale Florida
The amount of money that you can save with a VA streamline refinance varies with the current VA interest rates that change based on the normal market fluctuations. You should look at the current VA rates displayed on our site and match them against the rate you got when you initially got your VA loan. If the rate is lower than what you are currently paying, there’s a strong chance that you can save money with a VA streamline refinance loan.
Check today’s rates and see how much you can save.
Can I use a VA streamline to refinance another type of loan? Miami Fort Lauderdale Florida
No. VA streamlines or for VA to VA refinances only. If you have a conventional, FHA, USDA, or another type of loan, you could possibly use a VA cash out refinance. You would need an appraisal, and income, asset, and credit documentation.
I’m Ready to Apply for a VA Streamline. What’s my Next Step?
Call (888) 683-5147 or simply complete our online form for a free, no obligation VA streamline rate quote. Rates are low and it’s a great time to lower your home payment. VA streamline refinance Miami Fort Lauderdale Florida