VA Mortgage Refinance
If you have a VA loan that you took out a while ago, it may be time to look into refinancing. Whether you need a little cash from your equity, or a lower interest rate, the VA has made it incredibly easy and affordable to refinance with them. There are two main ways to refinance: VA Cash-out Refinance loan and the VA Interest Rate Reduction Refinance Loan (IRRRL) which is also known as a VA Streamline loan.
A VA streamlined loan is the easiest, simplest way to refinance your existing VA loan. It’s a great option for people who want a lower interest rate but do not need to take out any cash. The streamlined loan requires very little paperwork because the VA has all the information it needs, so you won’t have to provide credit checks, appraisals, etc. It is also relatively inexpensive – there are no out-of-pocket expenses.
Expenses and Cash Out: The Basics
If there are any expenses, they can often be worked into the price of the new loan. It is important to know that you are required to keep all the names the same on the loan and you will not be able to take out cash. If you feel like your interest rates are too high, now is a great time to get a VA streamlined loan to take advantage of the lower rates.
The other refinance option for your VA loan is the VA Cash-out refinance. This loan is good for people who need to borrow cash against their equity whether it’s for a new car, tuition, to consolidate credit card bills, or pay off any other liens against them. The cash-out option requires that you provide more paperwork than an IRRRL, but it is still an easy process. You can refinance for up to 90% of the appraisal value as long as it is the principal residence of the veteran.
How Does Marriage or Divorce Affect a VA Refinance
If you plan on refinancing after a divorce or you want to remove a co-borrower, you will need to submit new documents, even if you plan on getting an IRRL. The same applies to newly married veterans who want to put their spouse on the loan. Keep in mind that if you have divorced and are giving the house to your spouse, you will not be able to apply for a new VA loan until the original VA loan is paid off, so it’s a good idea for the non-military spouse to refinance with a traditional loan.
Getting Started
It’s easier than ever to get started. Simply fill out our simple 1-minute quote request form to get today’s best VA refinance rates.
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