VA loan rates a really dropped in the past week or so and there are a lot of questions about doing a VA streamline refinance in California. Here are some facts about breaking out the numbers of a VA streamline refinance:
- First of all you will have to pay off your current loan balance. Your loan officer will order your current VA loan payoff to find out what this number is. Be aware the payoff will be higher than your current loan balance because the current month’s interest has to be added to the payoff.
- A VA funding fee of .5% is added to the new loan amount as a cost of a VA streamline. If you receive VA disability pay this fee is waived.
- Escrow fees and title insurance are costs of the VA streamline refinance (Escrow fee, lenders title insurance policy, notary, recording fee)
- Lender underwriting fee
- If you have less than six months remaining on your current homeowners insurance policy the VA lender will want this renewed as part of the VA loan streamline refinance in California
- With a VA streamline refinance your new lender will take a up front reserve for property taxes as the lender pays your property taxes when due. This is the largest “cost” of a VA streamline refinance. But the key here is you will get a refund from your current lender a few weeks after you close from the current property tax reserve held by the lender. This will offset the new property tax reserve that is taken.
Many times the VA loan officer handling your VA streamline refinance can offset the above costs of the VA streamline refinance by paying much of these costs. And the costs can also be rolled into the new loan amount. The last bullet point is key. Please remember you will receive a refund from your current lender for the property tax reserve account they hold a few weeks after closing on the new VA streamline refinance. So it will offset the cost of the new property tax reserve being taken for the new loan. If your loan amount increases with the streamline refinance, you can pay it back down once you receive this refund.
A VA streamline refinance can save your tens of thousands in interest over the life of your VA home loan with the super low VA home loan rates available today. So don’t hesitate to call us at 858-922-7899 or email at homeloan8@gmail.com if you have any questions.
Some other highlights of VA home loans in California:
- You can get a VA home loan in California only two years after a short sale, foreclosure or bankruptcy
- VA loan limits in California areas such as Los Angeles, Orange County, San Diego, San Francisco, San Jose, Oakland go up to $1 million with 100% financing
- Veterans who receive VA disability pay do not pay the VA funding fee
Best Regards,
Rob Chomentowski
858-922-7899, homeloan8@gmail.com
Sr. Loan Officer (and VA specialist)
The Numbers For a VA Refinance Loan in California is a post from: VA Home Loans Call Rob 858-922-7899
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