Streamline refinancing was introduced as a way to speed up the home refinancing process. By reusing the original loan’s paperwork the process to refinance a home was reduced from a few months to only a few weeks. Streamline refinancing has become more popular because reuse of the original home’s appraisal may be the only way someone underwater on the property can refinance it at all.
Streamline refinancing is an option for borrowers who want to take advantage of low interest rates, get out of an adjustable rate mortgage (ARM) or graduated payment mortgage (GPM). Both the FHA and VA Interest Rate Reduction Loan offer streamline refinancing for home mortgages.