Lo and Behold! We are halfway through the year and sky high rates still have to materialize. We have 5 months left before 2017 comes to a close. And while markets experts believed that rates will still rise above the 4.5 percent mark before this year ends, VA home refi rates hover just below 4 percent.
August 8, 2017, home loans guaranteed by the Veterans Affairs with a 30-year term and has a fixed-rate have an interest of 3.750 percent.
In March 2017, home loan interest rates began to rise when it hit 4.3 percent. Then the rates took a roll back months after. Current low rates are not just true for VA home loans. In fact, by the end of July,
Freddie Mac mortgage loan rate was well below 4.5 percent forecast, at 3.97 percent.
What does this mean for homebuyers and homeowners? It is a high time for them to purchase a property or refinance an existing mortgage.
Will the rates stay low for the remainder of the year? No one can really tell for sure. However, Those who won’t take advantage of the
low-interest rates now may miss out of a great deal.
For veterans, there are different options to refinance their current home mortgage loan. Depending on their individual needs, there’s the VA Streamline Refinance Program and the VA Cash-Out Refinance Program.
Get a quote without the hassle.
A Quick Way to Secure Low VA Home Refi Rates
The VA streamline refinance is called the Interest Rate Reduction Refinance Loan (IRRRL). With the IRRRL, a veteran may refinance their loan without having to provide so many documents for verification. A home appraisal is also not required for this refinance loan. Moreover, there is no need to submit to the lender a new Certificate of Eligibility. The one provided during the application for the current loan shall suffice.
This is why it is called the VA streamline refinance. The loan application process is shortened or ‘streamlined’. It eliminates the need for standard documentation and verification, thus making the process quicker.
However, if a veteran currently has a non-VA home loan, he cannot refinance through the IRRRL. The existing loan has to be VA-guaranteed for the IRRRL to be a viable option. Because of this, the VA Streamline Refinance Program is also called the “VA-to-VA” Refinance.
Take an IRRRL with No-Money-Out-of-Pocket
One great advantage of this refinance option is that the loan can be taken with ‘no-out-of-pocket’ expense. By rolling the VA funding fee and the closing costs into the loan, it eliminates the need to pay up-front upon closing.
The ultimate goal of refinancing through the VA streamline refinance is to significantly lower your existing VA loan’s interest rate. However, if you are switching from an Adjustable-Mortgage Rate (ARM) to a fixed-rate loan, your new rate may not necessarily be lower than the rate on the old loan.
Because interest rates remain low during this period, it is best to closely examine if
refinancing will be a good step for you to take. Begin by asking your current lender for an estimate should you refinance through the IRRRL. However, do not limit yourself to just your current lender. It is possible to refinance your VA loan with other lenders who may have better deals than your current one.
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