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VA Streamline (IRRRL) Refi

We are looking to possibly refinance our current VA home loan to bring down our monthly payment. Our home was appraised at $160,000 when we bought it three years ago. We currently owe $148,000 and our APR is 5.75%. Our current lender is BofA so we went to them first to find out their rates. They said we qualified for a VA streamlune refi and the rate they gave us on 11/4 was 4.125%. They said we would have to pay 1/2 a point ($740) plus title and escrow (they estimated $1,000). This refi would drop our P&I by $184 a month. Does it make sense for us to refi? Is this a good deal through BofA or should we be looking for a lower rate with no points?
  • November 05 2011 - Olivehurst
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Answers (4)

Finding the best deal is a very complicated process. I believe the most important step in your refinance process is to start by researching the loan officer and what others have to say about them. This way you can start to see if the person you are talking to comes recommended or if anyone has made complaints. A lack of information or reviews could be a bad sign.

In addition you should compare what the lender is offering to you versus what you are seeing on the internet. Rates do change and most advertisements are only that. However if the rate is the same or there is a justification for the higher rate you are being offered then you know the loan officer you are working with is at least in the ball park.

Once you have determined the credibility of both the loan officer and the quote you are receiving you will know whether you need to find someone new or begin negotiating with your current lending option.

Unfortunately the information on the quote you have provided does not give enough information for a lender to give you exact advise. In order to determine the exact pricing and whether you are receiving the best and accurate quote, a lender will need all of the following.

1) Credit Score
2) Property Type
3) Loan Program
4) Property location (Different Regions get different pricing)

With that being said you may be able to find better pricing, but the first thing you need to do is start working with the best loan officer for the job, and get as much information as possible.

I would be more than happy to put you in touch with an expert in your area that specializes in this loan type, and has a history of competitive rates.

  • September 14 2012
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  • September 14 2012
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ask them for 4.25%. the rabate will be huge and you could then do it with no closing costs.
  • November 06 2011
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You might do better elsehwhere, however one issue you will run into is the majority of lenders will want an appraisal on an IRRRL if they are not servicing the existing loan.  

They will then lend up to 100% of the appraisal value.   The apprasial is not a VA requirement, however most lenders will want one in this circumstance.

If you feel your house would still be able to appraise at 150,000 or better, it would make sense to look around and get another formal estimate to compare to what B of A offered you.    If you believe you current value is less, your best move is proceed with the existing offer.
  • November 05 2011
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