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There are 3 main reasons you would want to refinance your home: 1.) You are in an ARM (Adjustable Rate Mortgage) and would like to be on a fixed mortgage.
2.) You would like to take cash out of your home equity for debt consolidation, investing, or for any other reason. 3.) Your current mortgage rate is too highly and you would simply like to lower your monthly mortgage payments. VA fixed rate loans are the most popular programs for refinancing. This is where you have stable predicable payments each month and as a result offers the most security for yourself and your family. If you are currently in an adjustable rate mortgage (ARM) and would like the security of a fixed rate, a fixed rate VA is the right program for you. • Speak with your assigned VA Loan Officer to discuss programs and options • Complete a full mortgage application with the assigned lender • Upon approval, supply the required documentation • Coordinate with appraiser that lender chooses • Send in loan package and clear conditions from the Bank • Schedule closing That whole process generally takes no more than 30 days. One nice advantage of refinancing is that you are allowed to skip one month of your mortgage payment after you close. Depending on when in the month your mortgage closes you can possibly not make the current mortgage payment and skip the following month as well. You can use this money to payoff another bill, fix up your home, or even go on vacation. If you are looking to refinance and want the best rate and terms, and want an easy process with more favorable guidelines, a VA loan is probably the best choice for you. Streamline Refinancing A VA Streamline Refinance allows you to refinance your current VA loan into another VA loan. A VA Streamline allows you to: • Refinance into a lower rate and payment
• Convert you VA ARM into a fixed rate • Convert you 203(k) rehab loan into a 203(b) VA loan • Shorten you loan term There are several benefits to a VA Streamline Refinance. Generally, no appraisal is necessary. There are also no credit restrictions on an VA Streamline refinance. You income and employment are also not evaluated when applying for a VA Streamline loan. There are only a few requirements to obtaining a VA Streamline loan, they are: • You must have been in your current VA loan for a period of at least one year
• Your current VA loan must be current at the time of closing the new VA loan • The new VA loan must offer a lower payment or shorten the term without increasing your payment by more than $50 • If current VA loan is an ARM, and the new loan a fixed, the interest rate on the new fixed loan may not be more than 2 percent higher than that of the ARM. |
Daryl Mitchell Legacy Mutual Mortgage NMLS 221138
210-326-5545 dmitchell@legacymutual.com
2526 N Loop 1604 W Ste 150
San Antonio Tx 78248
Certain conditions and restrictions may apply call for more details.
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