VA TO VA REFINANCE TIPS

If you have a VA home loan, you already know the benefits of this very special program. The VA home loan allows for the purchase of a primary residence and doesn�t require a down payment. Further, the veteran is restricted from paying certain closing costs and there is no monthly mortgage insurance payment, even though there was no down payment made. Interest rates are extremely competitive as well. But when you�re considering refinancing your existing VA loan, here are a few tips to make the process easier.

First, there�s no need to start gathering all your financial information. You won�t need your paycheck stubs nor will you need bank statements. No income tax returns and if you�re self-employed, no company tax returns or profit and loss statements required. No credit score is needed, either. This is one big tip that�s a real time saver due to the reduced documentation needed. Some veterans with a VA loan may be reluctant to refinance due to the assumption there will be a mountain of paperwork required. Oh, there is no appraisal needed, either.

There are two types of VA refinance loans, a traditional and the Interest Rate Reduction Refinance Loan, or IRRRL. Lender often refer to the IRRRL as the VA �streamline.� With an existing VA loan, there is no reason not to go the streamline route.

The streamline can be used only when refinancing an existing VA loan to a new one. The new loan must have a lower rate than the new one or the transaction must be one that refinances an existing adjustable or hybrid loan into the stability of a fixed rate. There�s no reason to go the traditional route and have to provide the full financial information the loan program requires. You don�t even have to live in the property any longer.

One thing to note, while you can roll closing costs into the newly refinanced loan but you can�t take out any cash during the transaction. This is strictly a rate-and-term transaction. But if rates are lower than what you have or you feel it�s time to switch from a variable rate into a fixed, take the streamline. Perhaps the easiest mortgage process ever.

For more information or questions about mortgage loans,

Please visit Majestic Home Loan

Or Call  (855) 757-8748