If you have a VA loan you are in a great position to refinance your mortgage using the low VA rates streamline program. If you are in this enviable position you may be able to take advantage of some of the lowest mortgage rates in history. As such, there are some other benefits gems that come your way with having a VA loan if you are looking to refinance.
No appraisal required – in purest form, the VA doesn’t require an appraisal on your home if you already have a VA mortgage. Individual mortgage lenders may have imposed a requirement to perform an appraisal but this isn’t a requirement across the board. Make sure you check around to see if you can find a VA lender who doesn’t require an appraisal.
No credit scores – again, in purest form, the VA doesn’t have a minimum credit score requirement if you are refinancing a VA loan. However, some lenders may have self imposed requirements for credit scores. When it comes to scores, you can either take the steps to improve your scores, or search for lenders who don’t require scores.
No out of pocket expenses – the VA streamline program doesn’t require any out of pocket expenses. This means that all expenses can be financed in your loan.
Energy Efficient Improvements – the VA won’t let you get cash out with the streamline program, but they will let you refinance with it to get cash for energy improvements to your home up to $6000.
Pay some bills – while the VA doesn’t let you get cash out when you refinance with the streamline program, they do let you defer two monthly payments. This will allow you to save two month’s of mortgage payments – this money you can use for other purposes. Be aware though that this will extend the time you have your mortgage by two extra months.
An Extra Refund – while your new mortgage will set up a new account to pay your taxes and insurance, your old mortgage that you pay off will have an escrow account where you will mostly likely have some type of balance due back to you. You will get this money back several weeks after your refinance goes through.
