VA Loan Refinancing

Qualified veterans, National Guardists, Reservists and spouses of deceased soldiers have an excellent advantage in the form of an option to refinance any existing VA Loans they have. By refinancing their mortgage and taking advantage of the VA Loan refinance options available through the VA, they can pay less each month, switch to a lower interest rate loan, a fixed loan from an adjustable rate mortgage, and a slew of other benefits.

Types of VA Loan Refinancing

The three available options for VA Loan Refinancing are:

  • VA Streamline Refinance Loans
  • Cash Out Refinance Loans
  • Conventional to VA Refinance Loans

VA Streamline Refinancing Loans

Existing VA Loan Holders who want to reduce their monthly payments can do so surprisingly quickly and hassle-free with a VA Streamline Refinance Loan. VA Streamline Refinance Loans are also referred to as Interest Rate Reduction Loans (IRRL), and are by far the most popular VA Loan Refinancing loans available.

Veterans choose VA Streamline Refinancing because of the easy of applying and qualifying, the lack of paperwork, no cash out-of-pocket, and no credit check, job verification or income report. In addition, they are able to pay substantially less each month on their mortgage.

Pros:

  • Easy and fast
  • No out of pocket costs
  • No credit check, job verification or income report
  • A lower mortgage payment

Cons:

  • No cash out

Cash Out Refinance Loans

Cash Out Refinance Loans offer veterans who need cash the opportunity to take out their existing equity on their home and use it for any number of personal purposes. Veterans can get cash for up to 90% of the value of their home.

Pros:

  • No out of pocket closing costs
  • No monthly mortgage insurance

Cons:

  • 3% funding fee, though it is rolled over into the new loan
  • Stricter qualifications
  • Longer approval time since more paperwork is required

Conventional to VA Refinance

Perhaps the best benefit of all for VA Loan holders, they can switch to VA Refinancing on their current conventional home loan. The fee is 2.51% for first-time veterans.

Pros:

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  • Lower Interest Rate
  • All the benefits of a VA Loan, including no monthly mortgage insurance premium
  • No out-of-pocket closing costs

To Refinance or Not To Refinance

Deciding whether or not to refinance depends on your current situation. If you have a lot of equity in your home and need that money for one reason or another, a VA Cash Out Refinance Loan is most likely the best option for you. However, if you want to take it out in order to make home improvements, you can go with a VA Home Improvement or Energy Efficiency Loan instead and pay less overall.

Streamline Refinancing is an excellent way to negotiate better terms and pay less each month, and you can switch to a fixed rate from an ARM too. So the decision to refinance truly lies with you. We are experts in the field of VA Loans and understand all the VA Loan Refinance options like the back of our hand. You VA Loan Specialists can help.