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How Low Rate VA Streamline Refinancing Can Save You Thousands

06/15/2010

VA Streamline Refinancing is the lowest interest rate loan refinancing program. To be eligible for this refinancing program, you must be a veteran and already have a mortgage financed by the Veteran's Administration (VA). Since interest rates on VA mortgages are among the lowest they've ever been, there's no better time to take advantage of this refinancing program than right now. If you're interested, here's what you need to know.
First of all, understand that the primary purpose of this refinance option is getting a lower interest rate. If you need to refinance to get cash, you'll need to investigate other options since VA Streamline Refinancing does not give veterans any cash back.

Other VA Streamline Refinancing benefits include easier qualification. There is no requirement to verify income, employment or your credit. That's because the information gathered when you first applied for a VA mortgage is used to qualify you for this program. You are required to be current on your mortgage payments. During the past year, only one "past 30 days" mortgage payment is allowed. How's that for simplicity?

Another benefit of VA Streamline Refinancing is that there aren't any closing costs. The only fee the VA requires is a funding fee. This fee is equal to one-half of one percent of the loan amount. You can pay this fee in cash or you have the option of rolling it into the mortgage. Remember, this refinancing program won't give you cash. If you need cash, you'll need to pursue VA refinance loans with cash-out options. But, if you need money to make energy-efficiency improvements to your home, you may qualify for up to $6,000. These funds can be used to pay for energy-related improvements and can be added onto your loan.

Although VA Streamline Refinancing process is meant to be easy and affordable, it's worthwhile to know what lenders can and can't say about this loan program. First, no lender is the only lender qualified to handle VA Streamline Refinancing. Any VA-approved lender can offer this type of product, also known as an IRRRL or Interest Rate Reduction Refinancing Loan. Second, be wary if a lender tries to charge more than the required funding fee. Finally, don't refinance for an amount that exceeds your home's worth. If you do, it might not be possible to repay the mortgage with the proceeds from your home's sale.

If you have questions, get help from a lender who is qualified in and has experience with VA Streamline Refinancing.

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