The VA Streamline Refinance Program also known as “The VA Interest Rate Reduction Refinance Loan” (IRRRL) is designed to lower your interest rate by refinancing your existing VA loan. If you are currently in a VA loan and would like to lower interest rate by refinancing, the VA has made it easy for you. Since you are already qualified for a VA loan initially it’s a very simple and quick process to lower your monthly mortgage payments by taking advantage of this popular streamline refinance program.
The VA Streamline Refinance Program has reduced documentation, does not require an appraisal and is setup to let you get a lower interest rate in the easiest possible way. Many veterans refinance to lower their interest rate while others benefit from shortening the term of their loan to save on interest payments over the life of the mortgage. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.
The VA funding fee is collected by lenders at closing and is financed into the loan which helps offset the cost to fund the VA streamline program. It’s a requirement on all VA loans except when the veteran has had a service related disability in which case they can be exempt from paying this fee.
The VA Cashout is an excellent way to leverage the equity you have in your home to be able to payoff debt or simply pullout cash. It’s one of the most effective ways to consolidate high interest debt, including credit cards under one low fixed payment per month which may be tax deductible. You can also use it to refinance out of other types of mortgages like a conventional loan to get more favorable terms or even pay a second mortgage off with no mortgage insurance
In some cases it may be possible to skip (2) mortgage payments as part of your refinance. It will depend on when in the month you close your loan.
Yes, you can. A VA streamline will allow you to refinance without an appraisal
No, the lender will only verify if you are still employed but will not verify actual income. That is why debt to income is not a factor in qualifying for a VA refinance.
Typically this is not required since used the COE to qualify for the original VA mortgage.
If you choose to roll in your closing costs instead of paying for them a closing your loan amount will increase by this amount including the VA funding fee. But by skipping up to (2) mortgage payments in some cases, receiving escrow money back after closing, and the savings per month your breakeven on the streamline is realized very quickly.
Yes you are allowed to subordinate a 2nd mortgage and just payoff your first mortgage as long as the lien holder will allow it.
No, you can cashout up to the full 90% of the appraised value or you can cashout less if you choose without penalty.