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.
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