Interest Rate Reduction Refinancing Loan Sacramento

VA Streamline – Interest Rate Reduction IRRRL

Interest Rate Reduction Refinancing Loan Sacramento

Twelve Years ago, when Stated Income and No Documentation Loans were the rage, VA Home Loans became unpopular because the Government expected borrowers to actually pay them back.

IRRRL stands for Interest Rate Reduction Refinancing Loan. You may see it referred to as a “Streamline” or a “VA to VA.” Except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate, it must result in a lower interest rate. Read More Here

Recently VA Home Loans have been on the rise and are becoming the hot ticket and a great loan to have. One of the many benefits of a VA Loan is the ability to do a Streamline Interest Rate reduction without having to get an appraisal or jump through the normal hoops of income and asset qualification.

What is an IRRRL – Streamline VA Loan? Streamline VA refinances are a special privilege provided to veterans who have VA Loans, in that, once the rate goes down enough to show a lower payment on the new loan. Without the typical VA Appraisal or income qualification, the loan is a straightforward process benefitting the VA Borrower by either lowering the payment or trading an Adjustable Rate Mortgage for a Fixed Rate Mortgage.

Is My Loan Eligible for an IRRRL?

African American military father hugging family

In order to get a Streamline Refinance, you will need to meet the following requirements:

  1. On -Time Payments: You must be current on your VA Loan with no more than one thirty day late over the previous 12 months
  2. No Cash Out: This is not a cash-out refinance and you may not receive any cash back
  3. Lower Payment: Your payment on the new loan must be lower than on the current loan. However, this may not be true if replacing an ARM, Adjustable Rate Mortgage, with a new Fixed Rate Mortgage
  4. Certify Owner Occupied: You must show that the loan was for an owner-occupied property
  5. VA to VA Loan: The new VA Loan must be a new VA Loan to replace an existing VA Loan on the same property. This is considered a VA to VA Loan.

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Am I Eligible for an IRRRL? If you currently have a VA Loan, occupy your property, and the rate goes down, you may benefit for a Streamline Refinance.

How Do I know that I am Eligible for a VA Loan? In order to qualify for a VA Home Loan, veterans must have served in the military as follows: Over 6 months (181 days) during peacetime, 3 months (90 days) during war time or 6 years (2,190 days) in the Reserves or National Guard. You may also qualify as the spouse of a service member who was killed in the line of duty.

Do I have to Use My Current Lender to Do a Streamline Refinance? No, you do not. Any mortgage lender that provides VA Home Loans usually will be able to provide an IRRRL. In fact, different lenders provide different pricing, so it is a good idea to use a trusted lender and check the market to know what is available.

Will I Get Better Pricing If I Use My Current Lender or Is the Loan Easier to Get? Although many marketing flyers make it sound like using your current lender is going to make a difference, but typically the answer is no. The VA Streamline is a straightforward process requiring very little paperwork, but it is still a new loan that replaces your existing VA Loan.

Do I Have to Go Through a Credit Check and Get An Appraisal? While the VA does not require a new credit report, most lenders will require a credit check to make sure that you are still able to make the payments. When it comes to the Appraisal Report, different lenders have different rules depending on the market. At this time, an appraisal is not required when getting a Streamline Refinance.

Do I Have to Reduce My Interest Rate When Doing a Streamline Refinance? When doing a Fixed Rate to Fixed Rate Loan, you will need to reduce your interest rate and show a benefit in lowering the payment. However, if you have an adjustable rate mortgage and are moving to a Fixed Rate Mortgage, it is not necessary to reduce the rate.

What is the Maximum Loan Size for an IRRRL? While the VA does not have a maximum loan size, the loan amount for a Streamline is limited by the existing principal on your current loan plus closing costs and prepaid items.

How Do I Know If It is Time to do a Streamline Refinance? If you hear that rates are going down, it may be a good time to check in with your mortgage professional. It is a good idea to do an Annual Mortgage Review each year to keep your credit in check and to make sure you’re in the right loan program. Your mortgage professional has many options and it is important to make sure you are positioned properly.

If you have questions, please feel free to call or email Iron Point Mortgage in Folsom and we’d be happy to help. Our New Office is located at 1849 Iron Point Road Suite 120, Folsom, CA 95630.

Located in Folsom, CA serving the greater Sacramento, CA Area. Providing Home Loan, Refinancing and Mortgages.

3 Ways Clean Your Home with Kool-Aid

3 Ways Clean Your Home with Kool-Aid

My favorite drink as a kid was Kool-Aid. I used to love when mom mixed up a pitcher of Kool-Aid on a hot summer day. It was so refreshing! I also remember we used to use it to temporarily dye our hair awesome colors!

These little unsweetened Kool-Aid packets are still available in your grocery stores for about 25 cents each. I’ve even seen them as little as 10 cents before! They are so cheap! But, now days I don’t drink much Kool-Aid, so I came up with three ways to clean with Kool-Aid. So, stock up on the lemon and orange packets for your cleaning days… here’s 3 ways they will help you clean your home:

  1. Pour a packet or lemon or orange flavored Kool-Aid into your toilet bowl and scrub away the stains with a toilet brush. The citric acid and the abrasive texture of the powder help break down and dissolve stains. Plus, citrus Kool-Aid smells a whole lot better than chemical cleaning solutions!
  1. Run 1/4 cup lemon or orange Kool-Aid in a regular wash cycle—without clothes—and repeat as needed. The citric acid in lemon or orange Kool-Aid helps break down the buildup in your washing machine.
  1. Fill your empty dishwasher’s detergent compartment with lemon Kool-Aid and run a normal cycle. Again, the citric acid will help remove any buildup.

Try out these cleaning tips and let me know how it works for you! I have also used Kool-Aid to make play dough for my kids when they were young, removed chlorine from hair, and even made Kool “sand” art. There are a lot of great uses for Kool-Aid and I hope you can try some! Also, if you are taking advantage of this awesome housing market and record low interest rates, give us a call for a preapproval or refinance. We’d love to help!

Things to Throw Out Today

Things to Throw Out Today

Ahhh, the dreaded kid’s rooms. Between holidays, birthdays, and whatever days, they sure get a lot of STUFF throughout the year. And somehow it leaks out into other rooms in the home and before you know it your living room is now you kid’s play room. So, I’ve put together a list of items you can toss right now!

We’ve attacked the rest of the home, so let’s talk about the kids’ room. The trouble of getting rid of your kid’s things is that if they know what you’re getting rid of, all the sudden that broken toy is now their “favorite” toy, even though they haven’t thought about it or played with it for months. So, I put together a list of 10 items you can toss and they will never know! So, let’s get started… here is my list of 10 things you can toss today:

  1. Puzzles and board games with missing pieces – The games aren’t as fun with missing puzzles and board games. Chances are that no one is playing them anymore.
  2. Toys they’ve out grown, are broken, or they never play with – The ones that they’ve outgrown is better off being donated or given away to someone who will play with it.
  3. Books they never look at or are not age appropriate – Again, give those books away! Maybe you can get them new books to expand their literature.
  4. Clothes and shoes they’ve outgrown – Donate these items to someone who can wear them.
  5. Electronic toys with corroded batter compartments – Throw those toys out!
  6. Old skates or roller blades that don’t fit – Again, donate!
  7. Bike helmets that have cracks – You certainly don’t want your child riding around with a broken helmet.
  8. Stuffed animals they don’t need – “Don’t Need” is kind of a vague term. We will let you decide.
  9. Backpacks and bags that have broken zippers or aren’t used –
  10. Discarded collections like seashells, rocks, trading cards that they no longer are interested in – Kids go through phases and chances are they are going to go through many collections throughout their childhood. When they get a new hobby, toss the old one.

Kids’ rooms should be a place they can use their imagination, get on the floor and play with toys, and chill. Kids may love a toy today, and replace it with a new interest tomorrow, so don’t get attached to the stuffed animal Nana gave him two years ago. Keep their rooms simplified, interesting, roomy and organized.

So that is another room that we’ve helped you simply! I hope you enjoyed this series. Please let me know how this worked for you.

7 Signs It’s Time to Sell and Buy That Dream Home

7 Signs It’s Time to Sell and Buy That Dream Home

In your mind, you know you need to sell your home and get a bigger home for your growing family.  But your heart isn’t ready to part ways with the home where you decorated the first nursery. I have 7 signs it’s time to let go and make your move.

Selling your home and buying a forever home, is a big endeavor full of hope, emotion, and challenges. Letting go of your first home can be the first obstacle to overcome. I have put together a short list of signs that you may recognize now or perhaps later on when it is the right time to make the move.

The 7 Signs List (Buying or Selling Your Dream Home)

  1. You Have Curiosity about Real Estate: If you find yourself peeking through the real estate ads, wondering what is on the market, that is the first sign that you are interested.
  2. “For Sale” signs popping up around your neighborhood: If a house on your block, similar in size, just sold for what you’d be happy to get for your home maybe it’s time to sell.
  3. Interest Rates: If you worry about the interest rates going up before you make your decision.
  4. Your Home No Longer Fits Your Lifestyle: Another factor to consider is how well your home meets your everyday needs. Perhaps you could use another bedroom to accommodate your growing family
  5. You Outgrew You Home: If you know remodeling won’t fix the lack of living space, number of bathrooms or bedrooms.
  6. School Systems: If you are checking out schools for your pre-kindergartener, maybe another neighborhood puts you in the right district.
  7. You Dream About Another Home: Maybe you just can’t get the vision of your perfect home out of your head at night.

All of these signs, collectively, or individually may mean you are on the path to letting go. And, it all takes time. The perfect place to start, if you think you are ready, is to see what you’d qualify for by getting preapproved. Give us a call for a free consultation, we’d love to help.

How to Save Money Without Trying!

How to Save Money Without Trying!

How to save money for your Next Mortgage, Refinance or Home Loan with Iron Point Mortgage in Folsom, CA

Saving money for small purchases or extra spending money on vacations doesn’t need to be boring or hard. It can be easy and fun! I found two clever ideas that can help you save without really even trying!

It’s very simple. The first idea is to use an empty 20oz bottle, like a coke bottle. You might want to rinse it out first so it won’t be sticky and then and let it dry. At the end of the day, go through your change and deposit all of your dimes. When the 20oz bottle is full there should be over $100 in dimes. Ridding your dimes at the end of the day is so easy and effortless because it doesn’t seem like you’re putting way a lot of money, so it shouldn’t be hard to stash away and the fun part is when the bottle is full. Now you have over $100.

Once you’ve conquered the dime deposit you may want a bit of a challenge. So, my next idea is to make some sort of safe, like a shoebox or a shadow box frame. That makes it more visible and fun. Now every time you get a $5 bill, put it in your “safe”! At the end of the year, you should have a great savings! I’ve paid for my family vacation to Disneyland using this trick!

If you have a great savings tip that works for you, we’d love to hear about it. If you are thinking about a home purchase or just interested in refinancing, give me a call while the rates are at historic lows! Thanks for joining me. Have a great week!