The Veteran’s Administration backs VA loans that are made by banks, savings and loans, and mortgage companies. The loan program has helped returning service members buy a new home, even without a down payment or an excellent credit score. These loans have become a critical lifeline for veterans who are buying a home.
Whether you would like to take on some house projects or pay off credit cards or student loans, using a VA refinance to get cash back can help you achieve several financial goals at a low cost. During a cash-out refinance, you pay off your first mortgage, get a new one for a larger amount and gain the difference as cash.
The money you receive from a cash-out refinance can be used for anything. Any other type of mortgage loan can be refinanced to a VA loan. A VA loan also requires you to have less equity in your home to get cash out and allows you to refinance more of your home’s value than other loans.
If you already have a VA loan, but would like to refinance to get a lower rate, you can apply for the Interest Rate Reduction Refinance loan. This type of loan is also referred to as a VA streamline refinance and therefore has a more quick and simple process.
Although you can’t get cash out with this type of VA refinance, there are many other advantages. These benefits include a lower interest rate, ability to roll refinancing costs into the loan, no new Certificate of Eligibility required, chance to change your mortgage structure (adjustable rate to fixed rate), and a lower VA funding fee than with a cash-out VA refinance. If you do wish to get cash out, you will need to apply for a full refinance.
If you are a qualified veteran or service member, or their spouse, and are looking to take advantage of the equity you have in your home or save money by lowering your interest rate and monthly payment, you may consider a VA refinance. Even if you don’t currently have a VA loan, you can take advantage of the benefits by switching loan types.
While any qualifying veteran can do a full VA loan refinance, to qualify for a VA streamline refinance, you must already have a VA loan. If you currently have a VA loan, you may consider a streamline refinance if you currently have an adjustable rate VA mortgage and want to switch to a fixed rate mortgage. Additionally, if you are having any trouble keeping up with your current payments, a streamline refinance can help by lowering your rate, reducing your payment, or extending your term.
In order to be sure what you qualify for and the best financial situation for you, speak with our helpful loan officer staff for today’s rates and a personalized quote. Don’t miss out on taking advantage of this unique and beneficial refinancing option.