VA Jumbo Streamline Loan
The VA Jumbo Streamline Loan option is for those who have an existing VA loan for over $424,100 and would like to lower their interest rate. If that describes your situation, then you can take advantage of the VA jumbo streamline loan as soon as you’re ready. The jumbo streamline loan is fundamentally identical to the normal VA streamline option; it simply allows for larger loan amounts.
The VA’s Streamline Refinance program, also known as a “VA to VA” loan or Interest Rate Reduction Refinancing Loan (IRRRL), allows you to lower the interest rate on your mortgage with few or no out-of-pocket costs. This is only available to you if you have already used your eligibility for a VA loan on the property you intend to refinance, and is probably the best option for you if you just want to refinance your existing loan at a lower interest rate.
There are advantages to getting an IRRRL. As was mentioned before, you can refinance your existing VA loan to a lower interest rate. This loan can be done with “no out of pocket money” by including all costs in the new loan. The VA does not require an appraisal, income or employment verifications, or a credit report or termite report, as long as the current mortgage has been paid as agreed for the last 12 months and is up to date at the time of refinancing. You are also allowed to include up to $6,000 in your refinancing loan for the purpose of energy efficient home improvements. The VA streamline refinance option (including the jumbo version) has the following major benefits:
- A lower VA interest rate
- Skipping two mortgage payments with no penalty
- Allow you to pay off your loan much faster
- Does not require an appraisal
- Does not require employment or income verification
Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you a lot of money in interest over the life of the loan, if the reduction in the interest rate is not large enough or the closing costs of the new loan are rolled into the payments, you could potentially see a large increase in your monthly payment. Let us at Low VA Rates help you determine how to make the streamline refinance option work best for you.