Veterans have the opportunity to apply for a VA streamline loan, which offers excellent refinancing solutions, in comparison to traditional alternatives. It is the right choice if you have an existing VA home loan, and want to refinance it. Thanks to this solution, you don’t have to worry about not being able to pay off the existing mortgage. VA Streamline is a fantastic opportunity for veterans who are struggling to cover monthly credit payments on time.
You never know what might happen in the future. You can lose your job, and therefore your income. It is followed by the inability to pay mortgage expenses on time every month. Luckily, you don’t have to worry about this. If something you weren’t expecting happens, you can apply for a VA streamline refinance.
What do you need to know about this loan program?
The technical term is IRRRL. It stands for Interest Rate Reduction Refinancing Loan. If you are struggling with monthly mortgage payments, it is the right choice for you. It allows you to refinance an existing credit with a VA streamline refinance loan that offers lower interest rate.
If you want to apply, you should know that the process is relatively straightforward. You don’t even have to go to your current lender. You can choose any bank you want, just make sure they are VA approved. Choose someone who will respond to your calls and emails in a timely manner, and who will take your refinance as seriously as they would theirs. When it comes to eligibility, the same rules apply as with a regular VA loan. However, you shouldn’t be late on your monthly mortgage payments, if you want to get approval for this refinancing option.
The length of the IRRRL can be between 10 and 30 years. Many veterans make a decision to choose a 15-year loan because they want to pay off their home as soon as possible. They don’t want to wait for 30 years for this to happen. However, if you are one of these individuals, keep in mind that your monthly payments will go up if you change from a 30-year to a 15-year loan. You should consider this solution, as it offers long term benefits. For example, you will save a lot of money on interest rates during the life of the loan, if you pick a solution that lasts one and a half decade.
Benefits of IRRRL
When it comes to VA streamline loans, they have several advantages. For example, there are no credit qualifications. It means you don’t need to have an excellent credit rating to get approval for this solution. It is perfect for those who have had financial issues in the past.
The second benefit in comparison to traditional solutions is that the appraisal is not necessary. Also, there is no income verification. You can get approval for IRRRL no matter how much you earn monthly. Your interest rates will also be lower than before. Finally, you can change from a 30 year loan period to a 15 year one.