Why Doesn’t Everyone with a VA Streamline Do a VA Hybrid?

If you would have asked me just a few years ago, if I would ever put my own property or mortgage on an adjustable rate loan, I would have said NO WAY!  Fast forward to today and I only wish I could do what so many men and women Veterans or VA loan holders can do with their loans.  I only wish the VA streamline loan into a VA hybrid loan was something that I could do and take advantage of.  I have not served and thus do not have the right or privilege to get this loan.

In order to take advantage of the VA streamline refinance or VA IRRRL (Interest Rate Reduction Refinance Loan), you must have a VA loan now and must have honorably served in the Armed Forces.  If you do have a VA loan and are eligible and do not take advantage, you are making people like me, who wish we could, very frustrated!  Ok well in all honesty, not everyone benefits from the streamline, but the cases are very few and far between.

Who can benefit from the VA streamline refinance?

  • Anyone with an ARM or adjustable rate loan now
  • Anyone with a fixed rate now that is at 4.25% or higher
  • Anyone that is on a 30 yr loan but wants to pay their home off much faster
  • Anyone that does not plan on being in the home for more than 3-5 yrs.
  • Anyone in a short pinch for cash that could benefit from an instant amount of money in their pocket

So who will NOT BENEFIT from a VA streamline or VA IRRRL?

  • Someone who does not like saving money
  • Someone who won’t take time to educate themselves
  • Someone who has been fed false info for too long

Ok, those were joking, kind of.  The fact is very few people will not benefit from the VA streamline.  Those that will not benefit normally have been in their loans for 10 plus years without refinancing and are close to paying the balance off.  Someone who has a fixed rate in the low 4 to high 3 range or someone on a 15-year loan that does NOT need to lower a payment by going to a longer term.  Other than those examples, you will benefit normally by doing the VA streamline.

So please, spend some time on this blog and research all the reasons to streamline your VA loan, or send us a question or call us up.  There has never been a better time to get locked in at such low VA interest rates like there is now.

How to Shop for the Best VA Streamline Deal Among Lenders

Lately, it seems more and more VA homeowners (people with VA home loans from the Dept of Veterans Affairs) are shopping around and getting lenders to compete for their loans.  This is a very good sign on the surface and I am glad to see a more educated homeowner than in years past.

Unfortunately, however, there are lenders out there who know how to trick our Veterans into thinking they are getting the best deal, when in all reality, they are not!  I am hopeful that this blog post will shed some light and make the consumer (our military homeowners or even buyers) more intelligent and ready to shop for the best VA Streamline Rate as possible.

You need to understand some key terms first:

Consumer paid vs Lender paid- Since April 2011, it is illegal for a loan originator to make money on a loan from charging the borrower an origination fee or charge and having compensation directly from the lender.  A loan officer can charge you origination charges and have you pay him/her for doing the loan or the lender can pay the loan officer and he/she will charge you nothing

Origination fees– Any fee paid to the lender or the originator by the borrower. Normally the 1% origination fee charged by the loan officer and then any underwriting or processing fees.

Discount points– fees paid for by the homeowner to buy down to a lower than market interest rate.  VA loans can allow for up to 2 discount points or 2% to be paid by the Veteran

3rd party fees-These fees are on every loan and have to be paid for by the borrower on all Lender Paid transactions.  Do not be fooled, if you are told there are no 3rd party fees or do not see fees like, title insurance, title exam, escrow, notary, signing, tax, stamps etc then run for the hills; you are dealing with Mr. Shady!

Pre-paid and escrows/impounds– All VA loans will require an escrow account be set up and pre-funded at the time of closing.  In addition to having an escrow account cost associated with your loan, you will also see pre-paid interest on your loan.

APR- Annual Percentage Rate. The annual rate that is charged for borrowing expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. This includes any fees or additional costs associated with the transaction.

Good Faith Estimate– The form given to you where all origination fees, 3rd party fees, and prepaid interest and escrows are broken down for your viewing and research.
The best way to ensure you are getting the absolute best possible deal on your VA streamline loan is to compare the APR of all of your offers and also the ADJUSTED ORIGINATION CHARGE!  The video above explains this a bit better, however just ask your loan officer to indicate very visibly on your forms or paperwork, what your adjusted origination charge is.  The lower the adjusted origination charge, the cheaper the cost of that loan.

If you are shopping a loan here at Low VA Rates, we invite you to challenge us to our $250 APR guarantee.  We will gladly pay you $250 if we cannot beat the best deal you can find.

Lower Your VA Interest Rate Today With A Streamline Mortgage

Your mortgage payment is probably the most expensive payment you make every month. The reason for that high payment is the interest rate. This means that if you can lower your VA interest rate, then you can save money. In our current state of economics, or anytime for that matter, saving money is always a good thing.

If you are a Veteran, you’ve served your country and are rewarded with certain benefits that the rest of America isn’t eligible for. One of these benefits is a VA loan on your mortgage.

Unfortunately, you may not have gotten the best possible rate the first time around. That’s why the federal government is looking to boost the economy and help veterans with a VA streamline loan. This loan is actually an interest rate reduction refinancing loan that you can qualify for as long as your current home mortgage was financed with a VA loan and your current interest rate is above 5%.

Your VA interest rate can be reduced dramatically. Depending on what your current home is worth, what the amount your current loan is for, as well as some other basics, like credit history and such will give you a monthly saving that you can’t pass up. A 1% reduction in the VA interest rate will result in anywhere between $100 and $600 per month savings. Per month! That means that just by refinancing your mortgage loan you save thousands of dollars a year.

Many mortgage companies charge you money out of pocket to refinance a loan. However, as a Veteran, this is another benefit you need to take advantage of. Any closing costs and pre-pays can be added to the new loan, which means you don’t have to pay anything up front. The process can take only minutes and the ability to qualify is very easy.

The VA interest rates are some of the lowest in the country right now. Most mortgage companies can’t come close to these rates and best of all, they’re permanent. Other companies may offer you a low rate, but it’s an adjustable rate, which means that while it’s good now, it might not stay that way. The VA streamline mortgage is a low, fixed rate loan that keeps your savings high and your payments low for the length of the loan. You can’t afford not to take advantage of this great opportunity.

A streamlined mortgage loan is the best way for you to save money and lower your VA interest rate. The federal government is trying to turn the economy around and this is their way of helping all of the veterans. If you like saving money and have a current VA mortgage, then this is the refinancing option you want to be a part of.

Why We Work with Veterans- Loan Officer Speaks

I have done mortgage loans for nearly 7 years now.  Every different type, kind and term.  I feel most gratified though when I have the opportunity to work with and complete VA loans for veterans.

There is something special about those who have served our country.  They have put their life on the line for me and I feel a sense of gratitude for that.  For example, last year in 2008 I helped refinance a commander in the Army.  He has been in the army for 22 years.  Rates dropped so far this year 2009 that we refinanced his VA loan again with a VA streamline.  Since doing his loan this time we have stayed in touch and have done some catching up.  It was great to talk again about his goals, and I recently sent him an email with some pictures of our new baby.  He responded right back to the email with an update on his family too.

Helping veterans take advantage of the VA’s loan programs is a small benefit offered to those who have served in our armed forces.  I get excited about helping veterans finally use this program, something not available to regular civilians.  I feel proud to have helped with part of their fulfillment of dreams to own a home when I can help with their loan.  Home ownership has for decades been the hallmark of the American Dream.

I also really enjoy getting to know each veteran borrower and where they have came from, how their service in the military has changed their life, where they have traveled and served and what goals they are currently pursuing to get them the best loan to meet their needs.  Finally, I feel connected personally to my veteran borrowers because of the freedom they and those that have gone before them have offered me.  When I go camping with my family, set off fireworks on the 4th of July or even go down to the grocery store and just buy food to make dinner I often contemplate the freedom I have to come and go and do the things I please here in America.  Those freedoms have been purchased on the backs of our nations military.  And so I feel a great connection and a great respect for those I am able to serve in a small way by providing home loan services that meet their needs and expectations.

© 2021 Low VA Rates, LLC™. All Rights Reserved. Low VA Rates, LLC ™ is not affiliated with any U.S. Government Agency nor do we represent any of them. Corporate Address: 384 South 400 West Suite 100, Lindon, UT 84042, 801-341-7000. VA ID 979752000 FHA ID 00206 Alaska Mortgage Broker/Lender License No. AK-1109426; Arizona Mortgage Banker License #0926340; California DBO Finance Lenders Law License #603L038; Licensed by the Delaware State Banking Commission License #018115; Georgia Residential Mortgage Licensee License #40217; Illinois Residential Mortgage License #MB.6761021; Licensed by the New Jersey Department of Banking and Insurance, Ohio Mortgage Loan Act Certificate of Registration #SM.501937.000; Oregon Mortgage Lending License # ML-5266; Rhode Island Licensed Mortgage Lender License #20143026LL; Texas License LOCATED at 201 S Lakeline Blvd., Ste 901, Cedar Park, TX 78613; EAH061020 NMLS ID# 1109426 Consumer NMLS Access www.nmlsconsumeraccess.org. Click on these links to access our Privacy Policy and our Licensing Information. Consumer's total finance charges may be higher over the life of the loan. Consumer NMLS Access - NMLS #1109426.

*Annual savings calculator based on 2015 monthly average savings extrapolated year-to-date.