Saturday, May 19, 2012

Va Refinance Home Loans

Todays Mortgage Interest Rates - Va Refinance Home Loans
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Today's mortgage lending environment is becoming more and more difficult for borrower to get approved for mortgage refinance traction. Since the housing market began to turn lenders have started to tighten up their underwriting standards production it harder for borrower to get approved. Fortunately, for veteran borrowers they have two very flexible transaction options to ease the approval process straight through their own Va home loan program.

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How is Va Refinance Home Loans

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Va Interest Rate reduction Loan (Irrl)

The 1st option is something called a Va Interest Rate reduction Loan (Irrl). This is a loan where the veteran borrower already has a Va home loan and would like to refinance down to a lower interest rate given the current market interest rates. The spectacular, advantage of this loan is that it's incredibility easy to get approved. There are no appraisals required so value is not of a concern. There are no minimum credit scores; however, some investors and large banks have started requiring minimum credit scores recently.

The paperwork needed to process these loans is minimal at best. There are no paystubs, W2s, or bank statements required. One thing to watch at for is with such easy credit standards veterans come to be very susceptible to unscrupulous lenders that are more than willing to take advantage of borrower. The majority of my old clients are receiving unprecedented number mailers that make it seem that Va rates are lower than that verily are. So please watch out for your conclusion costs when proceeding with caution with such a transaction.

Summary of the Va Irrl

· Va to Va loan rate and term rate reduction
· Appraisal, wage docs, or asset docs are not required
· Verification of the past 12 months of mortgage payments, and minimum credit scores may be required
· 1 or 2 skipped mortgage payments
· Up-to 2 reduction points may be rolled into the loan

Cash out or rate and term Va refinance

The 2nd option is what is considered a full Va refinance transaction with an appraisal, and all of the other general documentation i.e. Paystubs, W2s, ect. The nice thing about this loan is that it allows borrower to refinance all the way up to the current value of the veterans home. That's right 100% financing on refinance transaction for not only borrowers who are looking for rate and term refinancing arrival out off an Arm or an additional one approved loan but also for cash out refinance transactions as well. So veterans that want to integrate debt, do home revision projects, or for other discrete fancy are allow. In addition, to this the Va loan will allow Va jumbo loan refinance transactions that are over 7,000 or some in high cost areas. But an additional one word of warning the guidelines for Va jumbo refinance transactions can get very complicate so please make sure your loan officer is very well-known with Va loan or you could verily get yourself into some problems.

Summary of Va Cash out Refinance

· Cash out refinances up to 100% of the value of the home established by a Va assessment
· Refinance out of Arms or other mortgage like approved & Fha loans
· Va jumbo refinance loans are available but strike for home with caution
· No monthly mortgage insurance unlike most mortgages without 20% equity.

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