Question:

What is a streamline refinance?

Answer:

A streamline refinance is simply a loan that has little or no cost associated with the refinancing. The rate, closing period and rates are all reduced and appraisal is not required. The amount of paperwork requested by the lender for a streamline refinance is minimal. The term of the loan can also be reduced with a streamline refinance.

Usually the old appraisal is used if comparable properties are priced similarly or higher, and no cash can be taken with a streamline refinance. The mortgage to be refinanced has to be current, and principal and interest payments have to go down.

Sometimes lenders offer a no-cost streamline refinance increasing slightly the rate of the loan. If there is sufficient equity, closing costs may be rolled in the loan, too. However, a streamline refinance only implies less paperwork and closing costs do exist.

Even though new appraisal is not required on a residential property, rental properties need to be appraised before a streamline refinance.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: