VA Streamline Refinance

What is a VA Streamline Refinance?

VA Streamline Refinance

A VA Streamline Refinance is known as an Interest Rate Reduction Refinance Loan (IRRRL) by the government. In order for a loan to qualify as a VA Streamline refinance the existing loan being paid off must be a VA loan. The IRRRL allows you to refinance your current mortgage interest rate to a lower rate than you are currently paying often with minimal or no closing costs.

Why Refinance a VA Loan?

You may have a variety of different reasons for wanting to refinance. If interest rates have dropped, you can refinance to lower your total cost of ownership. If your payment is too high, you can refinance and lengthen your loan term to drop your monthly expenses. The VA Streamline Refinance process makes it easy and fast to refinance your home loan and you won’t get bogged down in red tape.

Getting Approved for a VA Refinance

The VA Streamline loan process is easy compared to other loan programs: once you have already been approved for your initial VA purchase loan, it is relatively simple to lower your interest rate and experience savings. In most cases, there is less documentation and the loan process moves much faster than a standard transaction.

Costs Associated with Refinancing a VA Loan

Closing costs can be rolled into the cost of the loan, allowing veterans to refinance with no out-of-pocket expenses. For most veterans, it is beneficial to take a slightly higher interest rate in exchange for a lender credit covering most or all of the closing costs. Your loan officer can go over the pros and cons of each situation to make sure you are picking the best option on any given day.

Requirements for a VA Streamline Refinance:

  • Be current on your mortgage with no more than one 30-day late payment within the past year.
  • Your new monthly payment for the IRRRL must also be lower than the previous loan’s monthly payment. (The only time this condition does not apply is if you refinance an ARM to a fixed rate mortgage.)
  • You cannot take any cash out on an IRRRL.
  • You must certify that you previously occupied the property, although you can still do a streamline refinance even if the property is currently rented.
  • You must have previously used your VA Loan eligibility on the property you intend to refinance

You do not have to use your current lender when doing a VA Streamline Refinance. It is beneficial to check around with various lenders to ensure you are getting a fair deal. We’re a local, family-owned mortgage firm based in the Washington area and serve the entire state, in addition to the broader Pacific Northwest region including Oregon, Colorado, and Idaho. Please get in touch with us with any mortgage-related questions or to get a rate quote.

Working with Sammamish Mortgage

  • We put YOU first. We are committed to getting every client the very best possible deal every single time.
  • Sammamish Mortgage offers some of the most competitive rates in the Nation!
  • Fast and efficient, we close most of our loans in 30 days or less.
  • We offer a variety of loans. Sammamish Mortgage will find you the loan that is right for you!!!

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