Here are 3 reasons to use the VA streamline loan
- Lower Interest rate with no new appraisal required. As long as a veteran currently has a VA home loan and has made their mortgage payments on time, they are eligible to refinance their loan without a new appraisal. This will save a veteran homeowner up to $450 just for the appraisal fee. In this current economic downturn with home values dropping as much as they have, this is a great benefit. Also, interest rates are at all time lows right now.
- Defer up to 2 payments. The VA will allow a borrower to defer up to 2 payments with a VA Streamline refinance. With these 2 deferred payments a borrower can pay down other higher interest bearing debt that they may have, they can apply it to their new mortgage when the first payment comes due to reduce the principal amount of the new loan or they can put it into savings and hold onto it. In today’s poor economic environment many VA homeowner’s are excited to be able to defer these payments to allow them to get caught up with the ever increasing cost of living.
- Do not have to re-qualify for the refinance. Another great benefit of the VA Streamline refinance is that you do not have to income qualify again. You also don’t have to show employment or assets. As long as you have made your payments on time and currently have a VA loan you would be eligible. Because we don’t have to look at your income and assets again it’s a much quicker process. It usually take between 2-3 weeks from start to finish.
