Knowing the details of a VA streamline refinance loan is important so that you can maximize the benefits of the refinancing loan. But somewhere along the way, you might get stumped at several questions including the following:

1. Why would a VA streamline loan result to higher rates if my current mortgage is an ARM?

A VA streamline aims to lower interest rates in a normal VA to VA transaction. But if you have an ARM and you want to switch to a fixed rate, your interest rate might increase. This is because ARM loans usually have especially low interest rates during the first few years of the loan, thus the rates have to be brought back to standard rates, which is why there would be an increase.

2. Can I get a VA streamline if I already used up all my eligibility on my loan?

Yes. Your VA streamline loan won’t take up any space on your eligibility as long as the VA streamline is meant to refinance another VA loan.

3. Are there funding fees for a refinance loan?

Yes. You have to pay funding fees based on the amount of the new loan. However, if you are exempted from the funding fee for some reason, you do not need to pay.

4. Can I use the VA streamline to improve my home?

Yes. The VA streamline loan allows you to include an amount up to a max of $6,000 meant for improving your current home. However, only improvements that make a home more energy efficient are allowed.

This entry was posted on Saturday, June 26th, 2010 at 1:23 pm and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.