If your head's been barricaded in the sand, you might have missed the recent borage of mortgage refinance advertising. However, all eligible veterans should first consider the VA streamline refinance when looking for the best mortgage product. In fact, let's take a moment to compare the differences between the VA streamline refinance and traditional mortgage refinance, before you apply for your loan.
To start, it should be noted that traditional mortgage refinancing options are not designed with the veteran borrower in mind. Many restrictions make it difficult for the veteran homeowner to obtain financing, including lower LTVs, higher interest rates, considerable out-of-pocket fees, credit qualification and prepayment penalties. In short, conventional borrowers are bombarded with significant amounts of paperwork and left playing the waiting game in many cases.
To the contrary, a VA streamline refinance, also called an Interest Rate Reduction Loan (IRRL), is exceptionally borrower-friendly and accommodating. The first thing to keep in mind is that VA loans are especially designed to meet the needs of veterans. Typically, there are less documentation and eligibility requirements, including no appraisals (upside down equity is matters not!), no asset verification or credit qualification. Although many borrowers worry about a tarnished credit profile, it is possible to qualify for a VA refinance with a fico score below 640! But the good news doesn't end with the aforementioned benefits. As a qualified veteran, you can expect to pay minimal or no out-of-pocket expenses, and may be eligible to defer two mortgage payments or closing costs into the loan transaction. Traditional loans and their strict guidelines are simply no rival. When compared side by side, the veteran refinance is the better value.
And if you were thinking that this entire process only benefits the veteran borrower, you'd be mistaken. Perhaps not surprising, financial institutions have a good incentive for writing veteran loans. Since 1944, the Veteran's Administration Department has ensured the repayment of a portion of all VA mortgage loans. This lowered risk on the part of the lender translates into lower interest rates for you. And without question, a veteran loan interest rate will be lower than its conventional rival.
After reviewing these differences, it's easy to understand why VA loans are so attractive. If your goal is to lower your mortgage interest rate and save on out-of-pocket costs, all with little or no hassle, a VA streamline refinance is waiting for you. To get more information about the benefits of VA loans, contact an approved financial institution in your area or visit the Veteran's Administration Department website.
To start, it should be noted that traditional mortgage refinancing options are not designed with the veteran borrower in mind. Many restrictions make it difficult for the veteran homeowner to obtain financing, including lower LTVs, higher interest rates, considerable out-of-pocket fees, credit qualification and prepayment penalties. In short, conventional borrowers are bombarded with significant amounts of paperwork and left playing the waiting game in many cases.
To the contrary, a VA streamline refinance, also called an Interest Rate Reduction Loan (IRRL), is exceptionally borrower-friendly and accommodating. The first thing to keep in mind is that VA loans are especially designed to meet the needs of veterans. Typically, there are less documentation and eligibility requirements, including no appraisals (upside down equity is matters not!), no asset verification or credit qualification. Although many borrowers worry about a tarnished credit profile, it is possible to qualify for a VA refinance with a fico score below 640! But the good news doesn't end with the aforementioned benefits. As a qualified veteran, you can expect to pay minimal or no out-of-pocket expenses, and may be eligible to defer two mortgage payments or closing costs into the loan transaction. Traditional loans and their strict guidelines are simply no rival. When compared side by side, the veteran refinance is the better value.
And if you were thinking that this entire process only benefits the veteran borrower, you'd be mistaken. Perhaps not surprising, financial institutions have a good incentive for writing veteran loans. Since 1944, the Veteran's Administration Department has ensured the repayment of a portion of all VA mortgage loans. This lowered risk on the part of the lender translates into lower interest rates for you. And without question, a veteran loan interest rate will be lower than its conventional rival.
After reviewing these differences, it's easy to understand why VA loans are so attractive. If your goal is to lower your mortgage interest rate and save on out-of-pocket costs, all with little or no hassle, a VA streamline refinance is waiting for you. To get more information about the benefits of VA loans, contact an approved financial institution in your area or visit the Veteran's Administration Department website.
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