Veteran?? Streamlined VA Loan

[itsbob]

We went to re-finance our house to do some work, when they told us the cost of the loan, we said, NOPE! Not paying 16K to use our equity..

Went to Rocket, and they offered a Streamlined VA loan, the entire intent is to Lower Veteran's interest rates, with a very low cost (or no cost) and VERY quick re-finance. I know we've all received a hundred ads in the mail about IRRL, Stream Line.. etc.. Well, it's TRUE!!

If you have a VA loan you CAN refinance, it IS very quick (2 weeks to close) and it's very cheap to do.

Our Streamline drops us to 3.3% (almost a full percentage point less than current) and drops our monthly payment quite a bit, added nothing to our current mortgage principal, and cost all of $1600 to do (first 3 payments we'll recover that money).

So yes, it is possible, if you currently have a VA loan, to do a streamline. The only requirement we got from Rocket is it has to reduce your interest by at least a 1/2 of a percentage point. No appraisal, no income verification, no inspections and a quick close.

This public service announcement is brought to you by "Conjunction Junction", "Hankering for a Hunk of Cheese" and "I'm just a Bill. Just a Lonely Old Bill".. we now return you to your normally scheduled program.

 

[LightRoasted]

If I may ...

We went to re-finance our house to do some work, when they told us the cost of the loan, we said, NOPE! Not paying 16K to use our equity..

Went to Rocket, and they offered a Streamlined VA loan, the entire intent is to Lower Veteran's interest rates, with a very low cost (or no cost) and VERY quick re-finance. I know we've all received a hundred ads in the mail about IRRL, Stream Line.. etc.. Well, it's TRUE!!

If you have a VA loan you CAN refinance, it IS very quick (2 weeks to close) and it's very cheap to do.

Our Streamline drops us to 3.3% (almost a full percentage point less than current) and drops our monthly payment quite a bit, added nothing to our current mortgage principal, and cost all of $1600 to do (first 3 payments we'll recover that money).

So yes, it is possible, if you currently have a VA loan, to do a streamline. The only requirement we got from Rocket is it has to reduce your interest by at least a 1/2 of a percentage point. No appraisal, no income verification, no inspections and a quick close.

This public service announcement is brought to you by "Conjunction Junction", "Hankering for a Hunk of Cheese" and "I'm just a Bill. Just a Lonely Old Bill".. we now return you to your normally scheduled program.

Most excellent. However, it is a "VA requirement" that the interest rate, and payment, must be lower, than the current mortgage using the IRRL, not Rocket's. All VA approved mortgage lenders offer the IRRL, including banks.

 

[itsbob]

If I may ...


Most excellent. However, it is a "VA requirement" that the interest rate, and payment, must be lower, than the current mortgage using the IRRL, not Rocket's. All VA approved mortgage lenders offer the IRRL, including banks.

Yes, that is true, it does look like I implied it was Rocket's requirement and it is not.

The only assumption I would make, is that it would much quicker and easier to do with your current VA mortgage holder, then going to a different bank.. again an ASSUMPTION on my part, but it makes sense.

 

[LightRoasted]

If I may ...

Yes, that is true, it does look like I implied it was Rocket's requirement and it is not.

The only assumption I would make, is that it would much quicker and easier to do with your current VA mortgage holder, then going to a different bank.. again an ASSUMPTION on my part, but it makes sense.

Please do not feel as if I was 'picking' on you in anyway. Was making no assumptions as to your veracity. Believed I was correcting the mortgage lender's statement to you when told the interest rate had to be 1/2% below current loan. In fact, the rate could have been .25%, as long as the rate is lower than an existing mortgage loan being refinanced. Interest rate reduction, however small, is the only requirement. (Of course the larger the better). Excepting when converting from an ARM to a fixed interest rate loan, only then interest can be higher. Many vets will refinance using the IRRRL program getting an interest rate reduced a fraction from the original, (say 4% down to 3.90%) that to most it wouldn't make sense. However, though, if say after ten years of paying down a mortgage, when refinanced, the payments are reset to another 30 years which lowers the overall monthly payment due to the total principal amount being lower. Usually done by those vets that are struggling with income. A savings of $150-$200 a month can make a world of difference. And the best part? They still have all the equity in their house as they had before, just a lower payment. And if their finances do change in the future, for the better, it's easier to pay down the mortgage if they want to. Peace brother-at-arms.

Facts from the VA benefits website.

• No appraisal or credit underwriting package is required when applying for an IRRRL.
• An IRRRL may be done with "no money out of pocket" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
• When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.
• No lender is required to give you an IRRRL, however, any VA lender of your choosing may process your application for an IRRRL.
• Veterans are strongly urged to contact several lenders because terms may vary.
• You may NOT receive any cash from the loan proceeds.