Va Streamline Refinance Often The Best Option In Declining Real Estate Market

The streamline refinance does not take into consideration a sinking real estate market. Every week the big banks are cutting back loan availability in the numerous real estate markets which have suffered declining values. One of the best remaining opportunities to take advantage of lower rates is for borrowers who happened to have a VA guaranteed loan.

Any veteran or active duty serviceman should consider a VA loan when purchasing a house. And if they did obtain a VA loan over the last few years, chances are their current interest rate is higher than what is prevalent in the first half of 2008.


There are several reasons why someone should take a good look at the VA streamline refinance option.

1) There is no appraisal. So even if the house lost some value, the borrower is still eligible.
2) There is very little underwriting. There is no need to go through the regular process of proving income, assets, and credit worthiness.
3) Get a low fixed in interest rate. If the borrower originally received an adjustable rate mortgage when you bought your house, you can secure your payment stability by converting it to a 30 year fixed loan with most likely a similar or lower interest rate.

The closing costs on a streamline refinance are very reasonable as well. While it can vary from lender to lender, often times you can get a fixed rate with no out of pocket costs. The fees that are involved are relatively low compared to a traditional refinance. Also, if the veteran has any service related disabilities they would be exempt from the funding fee on a streamline refinance.

If a VA borrower is in a declining home value market this is the only reasonable way to take advantage of the mini-refinance boom that is going on at the time of this article’s publication.

By: John P. Thompson

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John Thompson is the webmaster and owner of the popular website www.VArefinance.com The website specializes in helping VA borrowers learn more about the va streamline refinance and allow them to get a free current fixed rate quote.

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