Many veterans look to refinancing their homes to save money. Yet a VA refinance has many more purposes other than money saving. Even if you are not currently contemplating a VA refinance, consider some of the following options.
- 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.