1. Am I getting the lowest rate possible?
Answer: We strive to offer lower rates than our competition. If you find a better rate out there and close on it and can show proof we will pay out $250. Depending on how much you want to invest cost wise into your mortgage determines how low of an interest rate you will get with the current market.
2. What are the Closing Costs rolling into a loan?
Answer: On a VA streamline refinance, all the closing costs are financed into the mortgage so you do not have to pay anything out of pocket at closing. Closing costs consist of an Origination which is what the broker charges for their services, Discount which is what the lender is charging you to buy down to the lowest rate possible and is tax deductible. Max discount on a VA loan is 2%. Other fees include Title, and escrows that need to be gathered to ensure that you do not have an escrow shortage on your new refinanced mortgage. You will receive a refund of your current escrow balance after funding.
3. Is it beneficial to do the refinance?
Answer: Yes, as long as you are saving enough money either in the long run or monthly. If you shorten your term (going from a 30yr to a 15yr term) your payment will go up in most cases, but the long-term savings are substantially higher. Each lender has a net tangible benefit that it has to pass in order for approval and also if not a benefit to the veteran they will not allow the refinance.
4. How long is the process of refinancing from start to finish?
Answer: On average the process takes around 3-4 weeks to process, underwrite, close and fund. In some cases, it may take longer if the veteran has judgments or other liens on the property.
5. When will I receive my refund of escrow balance?
Answer: After the refinance has closed and funded the previous bank or lender has a maximum of 30 days to send the escrow balance refund to the veteran after the loan has been paid off. The veteran should take the initiative and call their previous bank or lender and ask when exactly they should receive the escrow refund.