What is a Streamline Refinance and What’s the Point?
At West Coast Mortgage Group it is our goal to do everything we can to
simplify your mortgage process. A part of that is evaluating if you may be eligible for a streamlined mortgage process. Although there are different options when it comes to refinancing your home, the most common refinance process is through an FHA or VA streamline home loan refinance. A refinance is a way for current homeowners to pay off their current mortgage and replace it with new home financing, and the streamline process is meant to help homeowners in an FHA or VA loan to lower their monthly payment with little effort involved. The reason this type of refinance is considered “streamline” is because there is generally no appraisal needed, limited credit underwriting, and no income qualifications.
FHA Streamline Refinance
If you currently have an FHA loan, you may be eligible for an FHA streamline refinance. An FHA streamline will allow you the ability to lower your interest rate through a refinance with a lot less paperwork and hassle. A lower interest rate will mean monthly mortgage payment savings and this is a great way to do it. There are only a few requirements for this process, and once eligible, you can be looking at lowering your monthly payment in a very short period of time. If you have paid your mortgage on time for at least 6 months and have not had any late mortgage payments then you are eligible for an FHA streamline refinance. One great feature of an FHA streamline refinance is you do not need to provide income documentation again. It may also not require an appraisal and only limited credit documentation.
When thinking about taking advantage of an FHA streamline refinance, there are still some rules that you need to follow. As stated, your current mortgage must be an FHA loan that you are not delinquent on. Also, there must be a clear benefit for the refinance such as a better loan term or a better interest rate. The loan balance also cannot increase which means that any costs or loan fees cannot be added into the loan and must be paid by the borrower or lender.
VA Interest Rate Reduction Refinance Loan or VA Streamline Refinance
If you currently have a VA home loan, you may be eligible for a VA Interest Rate Reduction Refinance Loan or a VA Streamline refinance. This is an easier way for veterans and other eligible borrowers to lower the rate on their VA home loan without a ton of extra paperwork. Even if you used to live in the home that has the VA loan and it is currently used as a rental, you may still take advantage of a VA Interest Rate Reduction Refinance (VA Streamline Refinance).
Similar to the FHA streamline refinance, the VA Interest Rate Reduction Refinance Loan does not need any income documentation since the goal of this program is to lower the payment that is already being made. Also, there may be no appraisal requirement and limited credit documentation needed. The goal is to get you saving money as fast as possible. The VA has strict rules that must be followed in order to take advantage of the VA Interest Rate Reduction Refinance Loan. The current loan must have 6 full monthly payments made and the rate or loan term must have a significant improvement. Also, all loan fees must be recouped in 36 months or less from the refinance savings. If you are unsure whether you may be able to take advantage a VA Interest Rate Reduction Refinance Loan or VA Streamline Refinance, one of our VA home loan experts would be happy to help.
Streamlined Through Experience
A mortgage lender that is experienced and specialized in these types of refinance programs can help make the process simple for their clients. At West Coach Mortgage Group, we focus on doing whatever it takes to help make the mortgage lending process simple. Past clients are able to experience a streamlined and simplified process with less effort. We keep historical client information extremely secure but ready to access for any future transactions. This allows the next transaction, whether it is a home purchase or refinance, to go quicker and smoother than the last. Many other companies who provide mortgages may also be banks or have other specialties and this often leads to a slower process. Likewise, agents who are less specialized may have to request extra documentation that is not needed and can slow down the process. Here at West Coast Mortgage Group, all we do are mortgages! This means that we know
exactly what each client needs to provide, and our entire system is optimized just for mortgages and providing five star service to our clients. In many instances, our clients only need to provide limited documentation for us to complete a transaction due to our innovative technology.
Conventional Loan Appraisal Waiver
Many conventional loans we refinance do not require an appraisal. Our innovative technologies review current estimated home value and compare it against the new loan amount to evaluate risk. If there is a low enough risk and an appraisal may not be needed, an appraisal waiver can be granted. Appraisals can cost homeowners between $400 - $650 so this can lead to a significant cost savings. And beyond the cost savings, clients whom are eligible for an appraisal waiver will also see their loans close faster and with less hassle.
Where to start?
If you think that you might be able to benefit from an FHA Streamline Refinance or VA Interest Rate Reduction Refinance Loan, then this may be a great way to go! For those of us that may not fall under a special streamlined refinance program, there is still hope for a refinance under a different loan program. With over 16 years of residential home loan experience, West Coast Mortgage Group has mastered the art of helping clients through the loan process. We are here to answer any questions you may have and our loan officers are here to assist you with your home purchase, mortgage refinance, and mortgage planning. Call us at any time for a free live consultation or schedule a meeting today!