Is it possible to do a “no cost VA streamline refinance“?
First, let’s review a similar term that many advertisers use in their marketing: “no out of pocket closing costs”. There is just a slight difference in words but a big difference in meaning between “no cost” and “no out of pocket closing costs” when it comes to the VA streamline program.
No Out Of Pocket Closing Costs
When you see an advertisement for a VA streamline with “no out of pocket closing costs” or “no out of pocket costs” it is very often true – the lender will be able to offer you a VA streamline refinance, roll all of the closing costs into the loan and you don’t have to bring the closing costs to the table at closing. If the lender structures the loan where all the closing costs are rolled into the loan, then you don’t have to bring any money to closing. This is fairly common with the VA streamline program. One popular question that many people ask is “can I get cash back at closing” and the answer is no – but at least you won’t have to bring any cash to closing.
No Closing Costs
When you see a lender advertise a “no closing cost VA streamline refinance” be a little more careful. It isn’t that it isn’t possible – it is just a little more rare. A no closing cost streamline refinance means that the lender will pick up the closing costs in exchange for a slightly higher rate on your loan. Again, it isn’t that it isn’t possible – but the interest rate environment has to be just right or else the math won’t make sense for the lender.
No Closing Cost Lenders
No closing cost lenders often are mislabelled and should be called “no out of pocket closing cost lenders” because they roll your refinancing costs into the loan. While getting both a no closing cost and no out of pocket closing cost VA streamline refinance is possible – you just want to make sure that you are extra careful at noticing the difference between the two.
Shopping multiple lenders and getting multiple written rate quotes is always a good idea – start here by submitting your information and get matched up with a great VA lender today.