Streamline Your Worries Away: Claim Your Lower Mortgage Rate With A Streamline Va Refinance

By Author: John Cory
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Whether you turn on the radio, television or browse the Web, recent marketing campaigns focus on mortgage loan refinancing. However, veteran homeowners that need reduced interest rates should first consider the benefits of a VA streamline refinance. In fact, let's take a moment to compare the differences between the VA streamline refinance and conventional mortgage refinance, before you apply for your loan.

First and foremost, conventional underwriting guidelines does not take into consideration the needs of veteran borrowers. These restrictions make it difficult for veterans to receive loan approval without encountering barriers such as lower LTVs, credit prequalification, upfront costs, higher interest rates and prepayment penalties. In a nutshell, the conventional borrower has to clear many more obstacles in pursuit of loan approval.

To the contrary, a VA streamline refinance, also called an Interest Rate Reduction Loan (IRRL), is very borrower-friendly and accommodating. The first thing to keep in mind is that VA loans are specifically designed to address 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 review. Although many borrowers worry about a blemished credit profile, it is possible to qualify for a VA refinance with a fico score below 640! But the benefits don't stop here. Veteran's can expect to pay no upfront costs and may even be able to defer two loan payments or roll closing costs into the refinance transaction. Traditional loans and their strict parameters are simply no match. When compared side by side, the VA refinance is the better value.

And if you thought these loans were only good for the veterans and their families, think again. Perhaps not surprising, financial institutions have a good incentive for writing VA loans. Since the passage of the Service men's Readjustment Act of 1944, the VA has guaranteed a portion of VA loans; thus reducing the lender's risk. As a consequence, the lender experiences less risk and you receive a better interest rate. Undoubtedly, your VA mortgage rate will be lower than conventional, refinance alternatives.

These comparisons make it clear why veteran loans are so attractive. If you want to lower your interest rate, with little or no out-of-pocket costs, while saving more of your hard-earned money, a VA streamline refinance is for you. To obtain more information about the benefits of VA loans, contact an approved lender in your area or visit the Veteran's Administration Department website.
Get instant financial relief by lowering your mortgage payments at va streamline or va interest rates. If you want to save time, money and frustration simply contact Hazel D. Seidman best Veteran's loan specialist online.