Something amazing is happening. With today’s economy, doing a VA Streamline costs you virtually nothing. That may mean that you could refinance with little to no out-of-pocket cost.
One of the ways that IRRRLS can benefit you is by making it possible to skip an entire house payment. Also, you close your existing escrow account, allowing you to get a refund of built-up insurance and taxes. Plus, banks pay almost all of the costs associated with the loan.
Let’s take a look at a real example. We just closed a loan where the individual had a loan balance of $390,550. The new loan balance was $391,324 with an interest rate of 3.25% and a 3.276% APR. After skipping one month’s house payment and receiving his returned tax and insurance from escrow, the client could theoretically apply these funds to his new balance and owe less than he did at the beginning.
Some mortgage companies try to sell you on lower interest rates, knowing that a lower rate is appealing to consumers. But, as you will see in our next post, interest rates are not the only aspects of financing to consider.
Creekside Mortgage, Inc has the skill and know-how to help you save money today. Give us a call 800.920.5420.