What Is A Streamline Refinance?

What is a streamline refinance and is it possible for me to streamline my loan? You NEED to know this to ensure you have the best rate!

If you have been in the market to refinance your home loan, you may be wondering what is a streamline refinance. A streamline refinance is when an FHA or VA mortgage loan is refinanced. In most cases this is done because interest rates have dropped and the owner of the loan wants to take advantage of the lower interest rate, which will result in lower mortgage payments and less interest paid over the life of the loan.

What Is A Streamline Refinance And How Does It Differ From A Traditional Refinance?

Only FHA and VA loans can be refinanced. They only difference from the original loan is that the loan is locked in at a lower interest rate. It is known as a ‘streamline’ refinance, because the process is usually very simple and does not require as much underwriting and verification as the original loan. It also differs from the original loan, because once a loan is refinanced, the period of time that the loan was taken out for restarts. For example, if you refinance two years into a 30-year FHA loan, you will restart at the beginning of the first year of the 30-year period.

What Are The Costs Of A Streamline Refinance?

Many people are under the impression that streamline refinances are free of cost. However, there usually are closing costs and other fees associated with the loan. At closing, these fees are rolled back into the loan, so that no out of pocket expenses are paid by the borrower. If you currently have an FHA or VA loan, check with your current lender or loan officer and make sure to ask what is a streamline refinance and if it is possible for you to streamline your loan.

What Is A Streamline Refinance?

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