Thousands of veterans and other qualified citizens have taken advantage
of the US Department of Veterans Affairs Home Loan Program to access
sustainable mortgage loans for their homes. However, because of various
reasons like fluctuations in the economy or the housing and lending
market in general, it might be advantageous for these individuals to
refinance their loans. As part of the Home Loan Program the VA offers a
refinancing option that gives veterans access to advantageous VA
mortgage rates.
The VA Refinancing Program
In order to refinance VA mortgage rates a veteran may apply for an
IRRRL or the Interest Rate Reduction Refinancing Loan. This loan, also
known to many as a VA streamline loan or a VA to VA loan, is especially
designed to let veterans take advantage of better interest rate while
still being backed by the government through the VA. Aside from moving
to a loan with a better interest rate, the IRRRL can also be used to
refinance from an adjustable rate mortgage to a fixed rate mortgage.
Advantage of VA Refinancing
The advantages of taking a VA home loan are still effective for the
refinancing option offered under the program. The guarantee the
government provides for the loans make it more attractive to lenders and
as such creates a more competitive market that leads to lower mortgage
refinance rates and other expenditures. Also, support programs from the
VA can help veterans that have difficulty paying their loans. Finally,
the IRRRL loan can be taken out without immediate expenses from the
borrower by including all costs in the loan. This makes it possible for
veterans to refinance their loans as soon as possible even when they
have no immediate funds to spend on the process.
Procedure for a VA Refinance
As with a regular VA home loan, eligibility for the home loan program
must be established. But, because the loan to be refinanced is already a
VA loan, the lender can process this step thorough an email
confirmation procedure for faster processing. The borrower has the
freedom to choose the lender that will process the IRRRL; however
lenders are not required to process a loan. This freedom ensures that
the veteran is not locked to a lender he or she does not like and
creates better chances for finding better VA mortgage rates, payment
schemes, and other offers for the veteran.
The refinancing
options of the US Department of Veterans Affairs’ Home Loan Program is a
great tool that can be used by veterans to create a better, more
sustainable mortgage scheme for the home they built or purchased with a
VA home loan. Consult a VA loan professional or the local VA office for
more details and other relevant questions about mortgage refinance
rates.