There are many reasons to consider refinancing your existing mortgage. VA Loans can be refinanced using a VA Loan in order to receive cash, have access to lower interest rates, or negotiate lower monthly mortgage payments. With the VA loan refinance programs, there are options available to veterans that other borrowers may not have access to. It’s helpful to take a look at these benefits to determine whether or not refinancing is a good option for you, and then follow the steps needed to apply for a VA refinance loan.
One of the first benefits is that qualified homeowners are able to use their home equity to consolidate their debts or take out cash when needed. This option is called a VA Cash Out Refinance. Money can also be taken out through refinancing to use for home improvements. For those who want to lower their monthly mortgage payments, one of the benefits of choosing VA Loan mortgage refinance options is that the process can be streamlined. Only homeowners who currently have a VA home loan will be able to qualify for the streamline option also know as an Interest Rate Reduction Loan (IRRL), which is a faster method of refinancing. While you will have to verify your income, employment, assets, and debts again the process is normally much quicker than when you purchased the home. Although the VA does not require an appraisal, many lenders do so it’s important to let the lender that you are working with know if you think you owe more than your house is worth.
Another benefit of using the VA Loan Guarantee Program to refinance is fixed fees that lenders can charge. If you are interested in refinancing for any of these reasons, there are certain steps to take:
- First, contact a qualified lender. They will assist you in get the ball rolling and initiating the required documents.
- Your lender will book a VA certified appraiser who will appraise the property according VA guidelines. They will take a look at your home’s condition and place a market value on the property.
- Finalize the documentation that the lender requested from you to include employment verification, income, debt, and assets.
- Attend the closing which includes a host of documents to sign.
- Change your payment to go to the new bank that you refinance through
Lastly, and one of the main purposes in doing a refinance, keep the hard earned money that you should be getting monthly from refinancing to a lower rate.
For more opportunities on refinancing or to speak with a VA Loan Consultant please visit www.valoancaptain.com.