Tightening lending standards by banks are directly responsible for the high demand for Veterans Affairs mortgages (VA loans), available to over 22 million veterans and active military members. If you have an existing VA loan, it is a good time to lower your mortgage rate with a Veterans Affairs Interest Rate Reduction Refinance Loan (IRRRL).

Also known as a Veterans Affairs Streamline Refinance, this program does not have the typical requirements imposed in a traditional refinance, such as credit checks, employment and income. It also requires less paperwork and documentation. If you have made timely payments on your mortgage, qualifying for refinancing under this program becomes easy.

Refinancing to reduced mortgage rates is more or less a quick process, and usually completed within a month of filing the application. Lowering the rate is also uncomplicated as VA mortgage rates are usually 30 basis points below the rates for a comparable traditional loan. 

Now to the big question: how can you verify if you're eligible for this refinance program? Assess the criteria below to determine your eligibility:

  • You must be the holder of a Veterans Affairs loan
  • You must confirm that the house is or was your primary residence
  • At the time of applying, mortgage rates must be falling. That is, post-refinance, your new mortgage payment must be less than your present monthly payment. This requirement is waived if you're switching from an adjustable rate mortgage to a fixed rate loan.
  • You must have made timely payments on your mortgage over the past 12 months 
  • You cannot extract cash from your home equity; you can only refinance on a property on which you've used your VA loan eligibility 

VA loan refinance does not require a home appraisal. So, your home value is not factored in when assessing your eligibility to the program.

For more information or questions about refinancing, 
Please visit  http://www.mhlmtg.com/ecamp/VAIRRRL_1203fb


Popular posts from this blog

August 18 - Why An Adjustable Rate Mortgage Can Be Beneficial

August 11 - The Benefits of an FHA Cash Out Refinance