What is VA Refinancing?
The VA refinancing program allows qualified borrowers to lock in a lower monthly rate for the remainder of their VA Loan or take out cash from their home's equity.
There are a few different ways to lower your interest rate with a VA Refinance, including a VA Streamline Refinance and a Cash Out Refinance. A streamline Refinance, sometimes referred to as an IRRL, allows you to lower you current loan interest rate. A Cash Out Refinance allows someone who currently has a VA Loan, and has built up equity to cash out part of the loan to pay off other debts. You can view our VA Loan FAQ page for more information or jump-start the process by pre-qualifying for a VA Refinance.
VA Interest Rate Reduction Refinancing
Also known as Streamline refinancing, the IRRRL program is convenient and cost-efficient, in most cases requiring no further appraisals or out-of-pocket costs. Borrowers also have the opportunity to roll their closing costs into the remainder of the loan in order to avoid down payments.
If you're unhappy with your original VA Loan rate, now is the perfect time to refinance. Interest rates are at an all-time low, so fill out the form above to find out how you can benefit from a VA Streamline Refinance.
VA Cash Out Refinancing
Another popular refinancing option is the VA Cash-Out Refinance, which allows you to tap into your home's equity and extract cash. Borrowers aren't required to have a VA Loan in order to choose this option; many homeowners use the cash-out option to refinance from an FHA or conventional loan.
Qualified homeowners may take out up to 90 percent of their home's loan-to-value and use it any way they choose, including home repairs, remodeling, tuition and medical expenses.
Other Refinancing Options
Our active-duty and veteran clients generally have a great advantage when it comes to applying for a loan or refinancing their mortgage. Here are a few things to keep in mind when thinking about your home and the options you have:
- In addition to the VA Streamline and Cash-Out options, Veteran Loan Center also offers a VA debt consolidation option. While similar to the Cash-Out Refinance option, the VA debt consolidation allows those who have enough equity in their home to refinance into a larger VA Home Loan in order to pay off debts. Borrowers may also have the opportunity to lower their monthly payments using this option.
- Those veterans who qualify for VA Cash-Out Refinance can use the funds to make home improvements. It can be done with a low interest rate obtained through a VA Home Loan. In addition, the VA mortgage known as the Energy Efficient Mortgage (EEM) provides funds for improvements to make the home more energy-efficient. However, when considering the EEM, keep in mind that the improvements must result in cost savings over time and must be documented by a Home Energy Rating System.