The Interest Rate Reduction Refinance Loan of the Department of Veteran Affairs (VA) helps military home owners to reduce the burden of mortgage payments. The VA Interest Rate Reduction Refinance Program (IRRRL), also known as the VA Streamline Refinance helps you to refinance your loan and thereby reducing the interest rate of your mortgage. Now, before you go for a VA Streamline Refinance, it would help you to know about a few things.
Below are some of the basic facts that you should know about before you go for VA Loan Refinancing to reduce the burden of you existing loan.
You would not need much to get a VA IRRRL as you already have a VA Loan. You would be reusing your original entitlement to get a refinance loan. You don’t need to get your Certificate of Eligibility (COE) separately. However, you can take your COE to prove your previous use of the entitlement. The requirement for occupancy for VA Refinancing is also different from a normal loan. You just need to certify that you have previously occupied the property.
You would also need to the VA Funding Fee for VA Streamline Refinance Loan. The fee for refinancing VA Loan is fixed at 0.50% of the total loan amount. You can pay this fee upfront or you can roll it in the loan and pay for it every month.
You just need to get in touch with a VA approved lender, preferably in your state. Any VA approved lender would help you to get a VA IRRRL. Make sure you compare the rates of different lenders, as the VA refinance rates differ from lender to lender. Some of the more established names in the business, offer VA refinance loans at cheap rates in every major state in America. So get in touch with such an expert and make it easier on your pocket to own a home in the United States.
VA Streamline Refinance - The Basic Facts
Below are some of the basic facts that you should know about before you go for VA Loan Refinancing to reduce the burden of you existing loan.
- You can only refinance an existing VA Loan with VA IRRRL. Conventional loans or other government backed loans like FHA Loans cannot be refinanced with this loan.
- You can refinance your loan without paying anything out of your own pocket. All the costs of refinancing and even the closing costs of the previous loan would be rolled into the new loan.
- You can refinance your ARM loan into a fixed rate mortgage loan. However, you must note that this might increase the interest rate of your loan.
- You should NOT receive any cash from the proceeds of the loan.
The Things You Need to Do for Getting a VA Refinance Loan
You would not need much to get a VA IRRRL as you already have a VA Loan. You would be reusing your original entitlement to get a refinance loan. You don’t need to get your Certificate of Eligibility (COE) separately. However, you can take your COE to prove your previous use of the entitlement. The requirement for occupancy for VA Refinancing is also different from a normal loan. You just need to certify that you have previously occupied the property.
You would also need to the VA Funding Fee for VA Streamline Refinance Loan. The fee for refinancing VA Loan is fixed at 0.50% of the total loan amount. You can pay this fee upfront or you can roll it in the loan and pay for it every month.
You just need to get in touch with a VA approved lender, preferably in your state. Any VA approved lender would help you to get a VA IRRRL. Make sure you compare the rates of different lenders, as the VA refinance rates differ from lender to lender. Some of the more established names in the business, offer VA refinance loans at cheap rates in every major state in America. So get in touch with such an expert and make it easier on your pocket to own a home in the United States.
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