VA Home Loan Refinancing
Save Money With VA Home Loan Refinancing
Think back to how happy you were when you got the loan to buy your current house. Now that time has passed, are you still happy with the interest rate? Whether you obtained your home with a VA mortgage or a conventional one, you may be paying interest rates that are much higher than what the market currently requires. Every time you write your mortgage payment check, you may find yourself annoyed that you are paying 5 or 6% interest when you could be paying only 3 or 4% now. If the most affordable option at the time was an adjustable-rate mortgage (ARM), you may prefer the security of a fixed-rate loan.
If you are a Veteran, you have the opportunity to do something about your higher rate or ARM mortgage. By obtaining a VA home loan refinance from VALoansFinance.com, you can shave points off your interest rate, lower your monthly payments, and stretch your monthly budget further. The VA offers both a cash out refinance loan and an interest rate reduction refinance loan that can help you.
What Are The Terms Of VA Home Loan Refinance Products
The cash out refinance loan is very similar to obtaining the initial loan on your property. Though it is good for refinancing loans from any source, you must meet the eligibility for VA home loans and the qualifications from a local VA-approved lender. The advantage is that you can obtain either a lower interest rate on your mortgage, cash back for any good cause, or both. Since you can get cash in hand for the same low interest rate, you can remodel your home, handle tuition bills, or consolidate high-interest credit cards for less than the rate on a home equity loan.
Though the credit requirements are less stringent than for the original loan, you must still meet creditor requirements to obtain a loan. Some lenders will work with a credit score in the 500s, while others require 1000 points more. Some will overlook a late mortgage payment, while others will not. You need to work with the lender to determine whether you qualify. The lender needs to know that you will be able to repay the loan, so many banks require that you have made your mortgage payments on time over the last 12 months.
Regardless of who your lender was for your original loan, any VA-approved lender can help you when it is time for a VA home loan refinance. VALoansFinance.com is able to work with you whether you want a cash out loan or an interest rate reduction refinance loan (IRRRL).
Want Lower Interest? Consider An IRRRL
Even if you do not need cash with your VA home loan refinance, you may want just the lower interest rate to lower your payments. The IRRRL, also known as the VA streamline, works for refinancing loans that were originally written through the VA. Many banks will process loans without a new appraisal. Credit requirements vary, although the VA does not require you to be prequalified.
Although the VA streamline is not for you if you need money for home renovation, the one exception is for improvements to make your home more energy efficient. You may include up to $6,000 for this purpose in your IRRRL.
Aside from energy efficiency improvements, the only other things that can be added to your mortgage in a streamline loan are the VA finance fees and closing costs, if your lender requires these. In any case, your loan cannot be any more than 100% of what you owe, plus these fees.
With either of these loans, the goal is to get your mortgage down to a lower rate than what you originally had. The only exception is if you have an ARM loan, where the interest was temporarily lower than a fixed-rate mortgage would require. With a fixed rate, you will normally save money over the course of your loan. The VA will be glad to help you do this.
Contact VALoansFinance.com Today
Thinking of cashing in on the lower interest rates available today? Start the process now with a visit to the VALoansFinance.com website where you can secure pre-approval online. Have questions or need more information? We have loan representatives available at (855) 383-5002. As an approved VA lender, VALoansFinance.com wants to help you with your VA home loan refinance. Contact us now!