2017 Streamline Refinance 101

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Streamline Refinance

Streamline Refinance 101: Your Guide To All Things Streamline

If you currently have a mortgage then there is a high probability that you will be tasked one day with having to refinance your mortgage and no matter what mortgage program you may be on, odds are there is a Streamline Refinance available for you to take advantage of.  This article will look into all things Streamline Refinance in an effort to put all your different loan scenarios in one place giving you a go to resource to get the information needed in a short amount of time.  Once you are armed with the information you desire, you are then only a phone call away to taking advantage of some great efficient programs to get you refinanced right away.

The main characteristic behind all Streamline Refinance loans is the fact that these loans are “no doc” or “minimal doc” loans meaning you will not need to put together all the paperwork and documents that you had to when purchasing your home.  In most cases, you will even be able to refinance your loan without even ordering an appraisal to check the value of your home.  If there was ever a time for quick and easy refinances, it is right now as more and more products are introduced to make this happen.  In its simplest form a mortgage refinance is just what it appears to be from its name and that is financing a new loan in order to take place of an existing loan.  Now people refinance for various reasons and they are as follows:

  • Refinance in order to take cash out of their property given they have the equity to support this.  This is common for people who want to do repairs and renovations around their home where they wouldn’t have sufficient cash otherwise.
  • Refinance to lower your rate is probably one of the most popular forms of refinancing.  This is exactly what it says it is in the fact that you will take advantage of lower interest rates than the one you currently have.
  • Refinance to reduce your loan term and what this means is that say you are 7 years into a 30 year loan, you would refinance to a 15 year loan which reduces your remaining years by 8.  This will allow you to pay off your loan faster than you are currently.

Streamline Refinance: FHA Streamline

It is only fitting that the first Streamline Refinance we look at is the FHA Streamline as FHA loans are the most popular loans that are completed.  As the name says, this Streamline Refinance is for those borrowers currently holding FHA Loans.  There are just a few requirements that are needed in order to go through with this and they are:

  1. A Net Tangible Benefit must be present in order to get this accomplished and what this means is there needs to be some sort of gain from the refinance whether it be a reduced payment amount or a shorter term
  2. Your original FHA Loan must be at least 210 days or 7 months old prior to going through with an FHA Streamline
  3. You must be free of any late payments within the last 3 months or 90 days prior to the FHA Streamline.

After these requirements there is only a few more items that you need to know and some of the best rules are that your income and employment is not verified because they will use the original qualification on your FHA Loan.

Streamline Refinance: HARP (Conventional Loans)

If you are one of those with a loan that is backed by Fannie Mae or Freddie Mac which are known as your Conventional or Conforming Loans, then the HARP or Home Affordable Refinance Program is the program for you.  If you haven’t read my past article with regards to HARP, you can find it here.  Now later on this year HARP as we know it will be going away and will be replaced with a new program yet to be named on October 1, 2017, but this wouldn’t prevent you from a HARP Streamline Refinance.  The basic guidelines for HARP are: You must be current at the time of the refinance with no previous late payments in recent history, you cannot have any late payments in the previous year or 12 months, and your original mortgage must have been closed prior to June 1, 2009.  With a HARP Streamline Refinance there is not a cap on your LTV or loan to value ratio due to the fact this program is designed for people who have underwater mortgages where you owe more than the home is worth.  This was the case for a lot of borrowers during the Great Recession where home values sunk leaving most borrowers in this predicament.  As with other Streamline Refinance options, HARP can be completed without an appraisal or a verification of employment or income.

Streamline Refinance: VA or IRRRL

The last loan we are going to look into is the Streamline Refinance option available for VA Loans.  VA doesn’t consider this a Streamline Refinance but rather an Interest Rate Reduction Refinance Loan or IRRRL for short.  Just as in the previous options, there are really only a few main guidelines that you are going to need to follow in order to take advantage of this loan and its benefits.

  1. You must have a Net Tangible Benefit with the VA refinance because it must show that your payment is reducing or you will not be able to get approved for this program.
  2. This must be your primary residence that you are currently residing in.
  3. You also cannot have more than 1 late payment in the past year or 12 months.

As with all the previous Streamline Refinance options out there, there is not a requirement for an appraisal, income, or even verification of employment.  As you can see, this is an extremely painless option for those with VA Loans to partake in.

Streamline Refinance: Easiest Options Around

As long as you are wanting to stay in the same loan program that you are currently in then a Streamline Refinance is your best bet for refinancing with minimal documents required.  The basic understanding of these programs is if you qualified for a mortgage in the first place, then there isn’t a reason you shouldn’t be able to refinance especially if you are reducing your monthly mortgage payment and making it more affordable.  This is also why most programs you come into contact with don’t want to see recent late payments because no late payments show that you are still making the payment as agreed and there is no further worry with this.  If you are curious about going through a Streamline Refinance then you need to reach out ASAP so we can get your loan started and we will do all we can to get you closed in 30 days or less!  I can be reached at 888-900-1020 or bob.vogel3@gmail.com.  I look forward to hearing from you any time day, night, weekend, or holidays!

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