VA Refinance loans offer a few different options for refinancing your loan, most often a VA streamline refinance or a cash out refinance. VA refinances can be done as a ”streamline” to simply reduce your interest rate or loan term. VA refinances can also be done as a “cash out” to use the equity in your home to pay off other debts or pull cash out. Generally speaking both transactions can be done with very little effort and minimal documentation required. For complete details on the VA streamline or VA cash out loan see below.
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VA Refinance with Cash Out
VA refinance with cash out, sometimes called a va cash out refinance, is used to take cash out of the home’s equity. This type of transaction pays off your existing first mortgage loan or loans on the property and any other debts that the homeowner wishes to pay off. If there is any remaining equity it can be received as cash back at closing for other needs. The cash can be used for any purpose. The veteran needs to qualify for this loan much like when they purchased the home. This type of VA refinance does require an appraisal all other loan qualifications.
Benefits of a Cash out Refinance
|VA Cash Out Guidelines:|
|Loan to Value||100%|
|Credit History||Mortgage history only|
|Debt to Income Ratio||41%|
- Refinance up to 100% of your current home’s value
- Consolidate and pay off other high interest debts
- Complete home improvements
- Put money in the bank for a emergency reserve fund
- No out of pocket closing costs
Check out our VA Cash Out Payment Calculator
VA Streamline Refinance
VA Streamline refinance, also known as an interest rate reduction loan, are used to lower the monthly interest due on VA mortgages. In today’s historically low interest rate environment, almost all veterans who have a VA loan are benefiting from this type of VA refinance. In 2010 thousands of Veterans just like you saved an average $122 a month. Some of our clients refinance to a lower term, pay their home off faster while paying the same amount monthly while others reduce their monthly expenses!!! The process is quick and easy with very little documentation required.
Benefits of a Streamline Refinance
|Max Loan Amount:||1000000+|
|Credit Score:||No VA Requirement|
|Interest Rate:||Current market|
- No out of pocket costs
- No income verification
- Lower interest rate
- Accelerate loan payoff by going to a lower term
- Defer 2 mortgage payments
- Get up to $6,000 out for Energy Efficient Mortgage improvements
- No appraisal necessary*
Check out our VA Streamline Payment Calculator
On a side note, I have made an observation about the VA and Veterans as they relate to VA loans.In the current mortgage market loan programs change day to day. The VA loan program has not been revised or changed in any substantive way for many years. The VA did a good job writing their loan program and stands behind this benefit for their veterans. Veterans are those type who meet their commitments. We know this is true from our years of experience with you. Check out one of our employees, Clemente, a fellow veteran (about us).
*Limited time OAC