Orange County, CA VA borrowers can take advantage of the VA Streamline Refinance program, also known as the IRRRL, or Interest Rate Reduction Refinance Loan. With rates still low in 2018, borrowers have been lowering their payments without needing an appraisal or even needing to qualify for the loan.
How Does the IRRRL Help Orange County, CA VA Borrowers?
The IRRRL was created to help those who have served our country be able to finance their homes at the best terms possible. With this program there is none of the following.
- No Appraisal
- No termite inspection
- No credit qualifying
The loan must be current with no more than 1 30 day late within the most recent 12 months. This program is available to Veterans who purchased their home with a VA mortgage or refinanced into a VA loan at some point. There is more than one way to do a VA Streamline Refinance. You can either go for the lowest rate possible and add closing costs into your loan amount, an option that may make sense when you are planning to stay in your home long term. The other option is to go for an interest rate that would allow for the lender to cover some or all closing costs on your behalf. The best idea is to review all options and decide which scenario works best for your individual situation.
Rates are Low. Should I Definitely do a VA Streamline Refinance?
Just because the rate you can get with a VA Streamline is lower than your current rate doesn’t mean it automatically makes sense to refinance. You need to look at the monthly savings a refinance will create and make sure the costs involved in the streamline refinance do not outway the savings. For example, if you’re being told it will cost more than 3 points to get that great, low, advertised rate, the costs may end up being too high that they defeat the whole purpose of refinancing. Also, when a lender tells you that you will “skip” a payment or two, understand that you never “skip” mortgage payment. VA does not allow lenders to advertise “skipping” payment, and yet many VA IRRRL mailers still advertise it. What is actually happening if you feel like you are skipping a payment is that the interest for the payments not being made is added to the new loan. This may be something some VA borrowers want to do, but it is important to understand all of your options. Make sure that the lender you are working with has your best interests in mind.
Authored by Tim Storm, an Orange County, CA Loan Officer specializing in VA Loans. MLO 223456. – Please contact my office at Fairway Independent Mortgage Corporation NMLS #2289. My direct line is 714-478-3049. I will prepare custom VA loan scenarios that will be matched up to your financial goals, both long and short-term. I also prepare a Video Explanation of your scenarios so that you are able to fully understand the numbers BEFORE you have started the loan process.