• Lower interest rates available create lower monthly mortgage payments
• Changing the length of term can save tens of thousands over the life of the loan
• Use the equity to get cash out of your home
• Pay off your home sooner
• Use the cash out option to make large purchases, pay off debt or do some home improvements

VA refinances can be used for all of the above, and so much more.  Your goals and needs will play a large role in the type of VA refinance you choose.  There are three main refinances available through the VA.  All of them can be altered to fit your specific circumstances.  Keep in mind that all of the options are only available to veterans of the United States military with eligibility.

The first of the VA refinances is the VA Streamline refinance.

• Streamlined process
• Used for changing interest rate and length of term
• No cash-out but potential for escrow refund and deferring 2 months mortgage payments
• No appraisal, income verification or requalification
• Lower credit is acceptable
• Most popular for lowering monthly payment
• Must currently be in a VA home loan

The second of the VA refinances is a Cash-Out refinance.

• Only one that can get cash out of equity built up into home
• Income, qualification and other information required
• Credit must be higher to qualify
• Home appraisal is necessary
• Home must have reasonable equity built up
• Use the cash for whatever you choose
• Must currently be in a VA home loan

The last most popular VA refinance is Conventional to VA refinance.  Many veterans who purchased a house with a conventional loan look into refinancing with a VA loan to take advantage of the incredible benefits a VA home loan offers.

• No private mortgage insurance saves hundreds every year
• Government secured loan
• Limited closing costs and fees
• Typically lower interest rates available
• Flexibility in term

Any of the VA refinances available can be altered to suit your needs.  The main point is to take advantage of the VA home loan program and all the benefits offered to United States veterans.  The benefits of this program are only offered to veterans.  In today’s market, this gives veterans a leg up in home-owning and refinancing.   If any of these options appeals to you, I suggest contacting a loan officer soon.  Interest rates are the lowest they have been in 60 years but will not stay low for much longer.  Analysts are showing large rises in the next 3 months.  Don’t miss out on this amazing opportunity.

• Lower Your Interest Rate.  Simply lowering your interest rate by a point or more can save you hundreds or even thousands of dollars a year.  Most that refinance with a VA Streamline save on average $150 each month!  That is money that they can apply elsewhere in their budgets.
• Maintain Your Home Value.  With a VA Streamline refinance you can use the value of your home from your original loan.  In today’s market, that is very good news indeed!
• Put Some Cash In Your Pocket.  Many veterans that refinance with a VA Streamline refinance are able to defer one or two month’s mortgage payments as well as receive a refund from their escrow account at closing.  This can add up to a couple of thousand of dollars.  What could you do with this money?

The benefits of a VA Streamline refinance don’t stop there though!  Saving monthly on your house payment is incredible, as is the ability to refinance your VA loan with lower credit requirements and no income requirements.  Your VA Streamline refinance is backed by the United States government, which puts a strong arm in your back pocket.  The government has set limitations on fees that can be applied to your loan, as well as limited closing costs and lowering requirements for borrowers.  All this adds up to great benefits for the veterans.

• Limited Fees.  The VA has mandated limitations on closing costs and fees that can be applied to your VA Streamline refinance.  The required funding fee can even be waived, depending on your disability rating with the military.
• Lower Credit & No Income Requirements.  Using your VA eligibility to purchase your home and then refinancing with a VA Streamline refinance allows most borrowers to refinance without lower credit & no income checks.  Even veterans that may have made a late payment in the past 12 months can still refinance.
• Flexible Terms.  Some veterans that refinance with a VA Streamline choose to change the terms of their loan.  So not only are they saving monthly, they may be lengthening or shortening their terms in accordance with their needs.
• Government Secured.  Backed and supported by the government, this provides the lender and the borrower with the knowledge that if trouble arises; the government may be able to help.
• No Private Mortgage Insurance.  Because the VA Streamline refinance is a VA product, there is no need to purchase private mortgage insurance.  This alone can add to the monthly savings by one hundred dollars or more.

With all the benefits of a VA Streamline refinance, the only question you should ask yourself is: What am I waiting for?  Refinancing now with a VA Streamline refinance can save you money and time.  A VA Streamline refinance is the best way for a veteran to refinance their home in today’s uncertain market.  With perks of no appraisal, lower credit scores, no income verification and government backing, the VA Streamline refinance is truly “streamlined”.

►Lowest Interest Rates Ever!

Maybe not the lowest ever, but certainly the lowest they have been in decades.  And time is running out to take advantage of these low interest rates.  Even a simple reduction of half a percentage point can save $50 or more each month.  Often times, we are able to secure the lowest interest rates available on the market.  A VA home refinance today could save tens of thousands over the life of your home loan.   Again I urge not to delay.  Interest rates cannot stay this low for much longer.  You might miss out on the best opportunity of your home-owner life!

►Cash Out.

Most home owners have a list of things they could do with some additional money.  Home improvements, new appliances, matching furniture for the guest room, a newer car for the kids, help paying college tuition.  The list is endless.  A VA home refinance now could free up some of that money to make large purchases.  A Cash-Out Refinance could help you tap into the equity you have built into your home and could allow for some of those wants to get crossed off the list.  Your monthly payment could even go down with a lower interest rate!

►Streamline.

Some VA home refinances are even easier.  If you are not in need of large lumps of cash, but could cover all your needs with one or two mortgage payments, a VA Streamline refinance might work great for you.  The process is super quick, no credit, income or employment verification, no appraisal, just a simple change of interest rate.  Some who choose this product are able to receive a refund from their escrow account at closing and/or defer one or two month’s mortgage payments.  And more savings with that lower interest rate.

►Change Your Terms.

If saving money isn’t your biggest focus, congratulations!  For some, paying off their home sooner is the big goal.  A VA home refinance can allow you the opportunity to change the rate and term of your loan, saving you years of mortgage payments and tens of thousands of dollars.  Taking a 30 year $150,000 loan with a 5.5% interest rate and a monthly mortgage payment of $851 and changing the term to 15 years with a 3.5% interest rate will only raise your monthly payment to $1100.  And while that might seem a little high, consider the $109,000 you will save with a shorter term!  Paying off your home sooner gives you the opportunity to build a nice savings account, purchase new toys, go on a vacation, and have fun with retirement.  Again, the list is potentially endless.

By simply rearranging your mortgage payments with a VA home refinance, you could save huge amounts of cash, pay off your house early or make improvements you’ve been wanting.  Just as a trader likes to mix up his investments to get more out of his money, you could take advantage and mix up your mortgage to save more money.

A VA Cash-Out Refinance offers veterans the chance to take advantage of the equity they have built up in their homes and receive money needed.  Since it is a cash out refinance, your home will need to undergo an appraisal and you will need to provide your lender or loan officer will income and credit verifications.  Your home will be appraised by an appraiser under license to the VA.  Meanwhile you will need to provide recent pay stubs and W2’s or tax returns, employment and income verification and bank statements.  If anything else is required your lender or loan officer will inform you.

Planning your budget for your VA Cash-Out refinance will go a long way.  Determining what needs to be done with the funds will help you to create a priority list.  Once you have decided on your priority list, receiving bids and estimates on the work desired will help you assess how much money you will need from your VA Cash-Out refinance.  This is a long term investment in your home and should not be taken lightly.  And anything you do to improve your home will only add to its value in the future.

Using a VA Cash-Out refinance to add on to your home, remodel rooms, replace necessary appliances or simply purchase new furniture is a great option.  Adding a new bedroom or bathroom can make your home easier to live in and give everyone in it some much needed space.  If adding to the interior isn’t a possibility, adding outdoor space is a great way to build in some more room.  A covered patio can give everyone more space in the warm months and if there are enough funds, enclosing the patio extend the length of time you can use the space.  Even simply adding to the landscaping can create more areas for your family to play in.  One more way to make your home feel bigger without costly and messy remodeling is to create organizational spaces throughout the home.  Putting in closet and garage organizers can straighten your extras and clear out unnecessary clutter from rooms making them feel larger.  All of these ideas are possibilities with the money you can receive from a VA Cash-Out refinance.

Interested in a VA Cash-Out refinance?  You should be.  It is a great way to get the extra money necessary to make your house into a more comfortable and functional home.  Contact a lender today to learn more.  Or better yet, a loan officer.  Many have the ability to work with several different lenders and come up with more offers than one lender can present.  Don’t delay!  Interest rates are at an all time low, the housing market is beginning to rally and it might be more difficult to do a VA Cash-Out refinance if you wait too long.  Besides, that outdoor hot tub is calling your name, isn’t it?

A VA Cash-Out refinance is an amazing offer that is only available to veterans. Unlike its counterpart, a VA Streamline refinance, the VA Cash-out refinance has more requirements. Therefore, if your monetary needs don’t exceed that of two months mortgage payments, it may be in your better interest to pursue a VA Streamline. The process is fast, with no credit requirement, income verification or home appraisal. Those that take advantage of the VA Streamline are usually able to defer two months mortgage payments and/or receive a refund from their escrow account. Yet, if your needs are more, a VA Cash-Out refinance is best for you.

The requirements for a VA Cash-Out refinance are similar to those for a standard conventional refinance. Your home will need to be appraised by a VA licensed appraiser. The estimate of your home value will play a determining factor in your refinancing. You will also be asked to provide proof of income and employment. This will include two months of your most recent pay stubs, two recent year’s WD forms or tax returns, two years of employment information, and proof of any other outside income sources. Finally, you will be required to provide two months of recent bank statements and your credit will be pulled by your loan officer or lender. All of this information will be processed to determine the most financially manageable loan option for you. The VA is currently allowing for their loans to be refinanced at 90% of loan to value. The combination of your home’s value and your equity will determine how much cash your will be able to get out of your home.

Once the loan has been processed and approved, it is up to you to decide what to do with the money. Some choose to pay off second mortgages or other high interest rate debt, thereby saving more money each month. Others choose to use the money to remodel or make necessary, improvements to their homes. Still others chose to make large purchases, a new car, boat or even an RV. What about helping your child out with college or going on a family vacation? Or even building up a security blanket in case of minor catastrophes. Anything is possible with the money you can receive from a VA Cash-Out refinance.

Making the choice to refinance your home, whether with a VA Streamline or VA Cash-Out refinance is a big decision. There are a lot of factors involved. Contacting a loan officer or ender with your questions is the first step. They can answer your questions and even run some primary quotes and numbers for you. Then you can decide which product is right for you. But don’t delay. Interest rates are at the lowest they have been in decades and can’t remain this way for much longer. A lower interest rate will have a huge impact on your monthly mortgage payment. Determine your needs and wants and then contact someone soon!

Although you have been approved for a VA home loan, it is important that you consider your costs and income before setting out to find a house.  Creating a budget with a little breathing room each month will give you a clear picture as to how much you can easily afford each month.  Armed with this information, a loan officer or lender can work the numbers to figure out how much house you can afford.  Then you can narrow your search to affordable homes in your area.

VA home loan requirements state that the house must pass an appraisal by a VA certified appraiser.  Typically homes listed for foreclosure and short sale may not be options unless they are able to pass the inspection.  This is for your protection as well as for the VA.  They are guaranteeing your loan to the lender and they want to see that you will be in a home that is currently livable and that will not become a money pit.  A VA home loan requires that the house you purchase must be lived in as your primary residence.  Therefore, you want to purchase a house that you can move into immediately.

Before going into closing, there are a few more things that a VA home loan can do for you.  You may be able to negotiate the purchase price due to the fact that the seller can pay up to 4% of the closing costs.  And the VA had placed a cap on the amount of closing costs you can be charged.  You can also purchase your home without a down payment provided the sales price is not higher than the appraised value. And you won’t need private mortgage insurance.  You will be charged a funding fee that may be waived if you have a disability rating with the VA.  Often, interest rates offered to VA home loans are better than those offered to traditional conventional loans.

VA home loan requirements are more liberal than most lenders.  It is necessary to keep in mind that while the VA is more relaxed with its requirements, some lender may call for extra.  Many look for credit rating and history, income verification, or even additional inspections.  Your lender will let you know if any of these are necessary.  If you wish, you have the right to shop around for a better offer from other lenders.  This is where loan officers come in handy. Many broker out to several lenders and are able to take your specific circumstances and find a lender to work with you. Purchasing a home with a VA home loan is one more way to take advantage of the excellent benefits that the VA has created as a way to thank you for years of service.

The VA has a great option for you.  If you are currently in a VA loan, you may have the ability to refinance into a VA Streamline and change your 30 year mortgage to a 15 year mortgage.  In doing this, there is potential to lower your existing interest rate, and shorten your term of payment.  In a short 15 years, you could pay off your home and start saving for your future.  Bolstering up that retirement fund, ensuring that you and yours will have comfort in your later years.

It is well-known that a typical 30 year mortgage holder pays 20%-30% towards their principal balance and the remainder goes to interest.  If the same person was to have a 15 year mortgage, they would be paying 50% towards principal, thereby saving themselves over $100,000 in interest alone through the life of their loan!  Imagine having that money to put towards your retirement!

The process to refinance using a VA Streamline is simple.  You must first be in a VA loan.  After that, your lender may ask for income and employment verification.  There may be a credit inquiry, but not to worry.  Your lender will work with you to get the best possible outcome.  Besides the benefits of a shorter loan term and a lower interest rate, you may be eligible to skip up to two payments and get your existing escrow account refunded to you.  With no out-of-pocket expenses and a potential refund, this is a win-win situation.   Don’t delay in contacting a lender.  Rates are at historic lows, they may not be this way for long.  Take advantage of this offer while you can and lock in your new interest rate today.  Start today to save for tomorrow.

Previous generations of home buyers have accepted rates ranging from 6% to 18%, and sometimes even higher.  Rates are often ranging now from 3.5% to 5.0% depending on the term of loan you choose.  The last time rates were this low was between World War I and II!  The new interest rate numbers have owners looking and wanting to refinance to take advantage of this extraordinary opportunity.

While not very many homeowners still boast an interest rate above 9%, there are many still out there in the 6’s and 7’s.  And many of them are veterans.  The better news for veterans is that the VA is offering a VA Streamline refinance that allows for flexible terms and interest rates.

Let’s see an example of savings by utilizing a lower interest rate.  Let’s say a homeowner, with a $100,000 home with a 7% interest rate in a 30 year loan is interested in refinancing.  At this point they are paying $665.30 in principal and interest.  If they refinance at 5%, they are paying $536.82, thereby saving $128.48 each month!  That is a couple of utility bills!  However, if they are interested in paying off their home sooner, and look at refinancing into a 15 year loan, they will get an even lower interest rate, let’s go with 4% and then wind up paying more towards principal each month, thereby building up equity faster.

This is an excellent option for those not planning on staying in their home forever, or wanting to fast track saving for retirement or other long-term saving options.  So in all, they will end up paying $739.69 each month, only 30% more each month than a 30 year loan.  Keep in mind that these interest rates are constantly changing, and these are just examples of what could happen.  Your savings could be more or the same.  The numbers speak for themselves.

You know your budget, your future plans and the goals you have set for yourself.  That is why contacting a lender is essential to help you sort through all the number crunching and information.   Unfortunately, the interest rates cannot stay this low for long.  If this is something that you might be interested in, you need to take action today and not miss out on this opportunity!