Another Mortgage ReFi Question Thread

[theFONZ]

I currently have a house in Panama City, FL that is being rented out. I am about $30K underwater on it at the moment, and my rate is 5.5% with a VA loan. Depending on the appraisal, I should have enough in savings to pay it down to refinance at current rates. My original plan with that money was a downpayment on a future house, but I think this would be more beneficial. I'd rather not use it to refi, but I doubt banks would do anything that far underwater.

My first question is, is this a good use of that money? Other than that, I only have one car loan at 1.9%APR.

Second, does anyone know anything about, or have experience with, the VA IRRRL? Looking at that, I may be able to refi, even upside down supposedly. Basically, I want to get the lower rate, but want to use the least out of savings as possible. Any ideas?

Third, where have people refi'ed through and had a pleasant/inexpensive experience?

[BK911]

I recently refi'd a rental property and purchased a new home, both through VA loans. Absolutely painless with zero money out of pocket. I am not sure, but I dont remember the rental property getting an appraisal.

Ben Choi was The Man and HIGHLY recommended. Very knowledgeable about VA loans.

Ben Choi
Phone: 800-814-1103 ext. 3303
Email: ben@veteransunited.com

[BK911]

Just found this:

IRRRL – What You Need To Know Before You Refinance a VA Loan Through the IRRRL Program

No appraisal needed but must already be a VA loan.

[theFONZ]

I've read here and there on the IRRRL, but most say it's up to the bank, so I was hoping someone had some firsthand knowledge.

And thanks for the contact, I'll look into him.

[theFONZ]

So Ben, you have two VA loans? I thought you could only have one. That may make it easier in the future if I use my downpayment money to refi instead.

[hardflex]

You may have trouble since it's a rental and not your primary residence. When we tried to do it on a rental they wanted 80% loan to value and the rates they offered were not the lowest rates because of that. Not likely you'll do much better than the 5.5 you have now.

But it never hurts to try.

[BK911]

I refi'd a rental property that used to be my primary residence. Original loan was a VA and refi'd loan was through the IRRRL.

My current home is also a VA loan. So yes, you can have more than 1 VA loan. Everybody kept telling me I couldnt get another VA loan, so I called somebody who specialized in VA loans. Turns out everybody was wrong!

Call Ben. Seriously, he knows this stuff and really helped me out.

[RANDY P]

what's the balance owed? Is it smart to risk personal savings to pay down house?

Think about that for a minute.

rjp