Borrowers with VA mortgages have the option to easily refinance to a better interest rate through a special program. This is often referred to IRRRL which stands for Interest Rate Reduction Refinancing Loan. Any VA approved lender can provide this option. Below is an introduction to streamline refinancing VA loan programs in MA.
Benefits of VA Streamline Refinancing
The VA does not require an appraisal, a credit check, or closing costs (except for a funding fee) on a refinance. These are critical in declining markets. However, specific lenders may include an appraisal or credit check as part of their company risk assessment. Closing costs are almost always assessed by mortgage companies, but the types and sum will differ from one mortgage company to another. VA guidelines allow their funding fee and any lender closing costs to be included in the loan amount so that borrowers can refinance without spending any money out of pocket. There is also an option to roll in the expense of energy improvements on the home.
Qualifying for a Refinance
For streamline refinancing with the program, the current loan must be a VA mortgage. The interest rate on the new loan must also be lower than that of the current mortgage (the one exception to this rule is when refinancing from an ARM to a fixed rate mortgage). Veterans may not receive any cash from the loan proceeds and no other mortgage, other than the original VA loan, may be included in the new loan. Veterans must also verify that they used the property at some point as a primary residence. More qualification criteria can apply based on individual mortgage companies.
Help with Streamline Refinancing VA Loan Programs In MA
Homeowners with VA loans can use their existing loan company or use a different one. Many financing companies are VA approved and can help with streamline refinancing. The above details are shared only as an overview. This information is considered accurate but is not guaranteed. It was prepared based on information available at the time the article was written and is subject to change without notice. Always speak with a local loan officer for up-to-date information and help. To be directed to a local bank providing streamline refinancing VA loan programs in MA, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. at 781-229-7900 or firstname.lastname@example.org.