Mortgage FAQ: Is Refinancing Different for a VA Loan than a Conventional Loan
"I HAVE A VA LOAN AND I WANT TO REFINANCE TO GET A BETTER INTEREST RATE AND LOWER MY MONTHLY PAYMENTS. IS REFINANCING DIFFERENT FOR A VA LOAN THAN IT IS FOR A CONVENTIONAL LOAN?"
Since you have a VA loan, you can take advantage of one of the simplest and fastest refinance programs: the VA Streamline Refinance. Also known as an Interest Rate Reduction Refinance Loan (IRRRL), a VA Streamline Refinance is very similar to an FHA Streamline Refinance.
With a VA Streamline, your lender won’t need verification of your income, employment or credit score and there is no requirement for a new home appraisal. Because of this, closing on a VA Streamline is often quicker than closing on other types of refinances. Another benefit is that this type of VA loan has little or no out-of-pocket costs for the borrower.
To be eligible, you must currently have a VA mortgage, you must not have any 30-day late payments in the past 12 months and you cannot do a cash-out refinance (you can only lower your monthly interest rate or change the term of your current loan). Although there may be other lender-specific guidelines, a VA Streamline Refinance may be an excellent choice for you. Keep in mind that there may be other refinance options available to you, so make sure to talk with your mortgage professional.
For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.
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