The government has given special benefits to Veterans who wish to refinance their current mortgage. Regardless of whether you currently have a VA loan or a conventional loan, you may take advantage of these VA refinancing benefits. If you qualify, a VA refinance can save you a large amount of money over the course of your loan.
VA Streamline Refinance
If you currently have a VA Loan and simply wish to lower your rate, you can get a streamline refinance. This is also known as an IRRRL (Interest Rate Reduction Refinancing Loan). The only requirement is that the current mortgage has been paid on time for the previous 12 months. Existing VA loans must be guaranteed by the VA.
BENEFITS OF REFINANCING USING AN IRRL OR STREAMLINE REFINANCE
- NO out-of-pocket costs.
- There is not a maximum loan amount on an IRRL.
- There is no monthly Mortgage Insurance.
- No Appraisal is required.
- No verification of income or assets is needed to qualify.
- The Funding Fee on all interest reductions is only .5% (waived if any Service Related Disability)
Cash-out Refinance
Cash out refinance allows someone who currently has a VA loan and has built up equity to “cash out” up to 90% of the property’s appraised value. This money can be used for any purpose. i.e. debt consolidation, improvements and cash.
BENEFITS OF A CASH-OUT VA REFINANCE
- With a VA Refinance, you can take cash out up to 90%. To determine how much money you qualify for, you may fill out the loan application form for a refinance. Todd Abelson will give you information regarding your interest rate and your monthly payments.
- There is no monthly Mortgage Insurance required, which will save you money each month.
- The maximum loan amount $144,000, regardless of the value of your home.
* To qualify for this debt consolidation or cash out VA loan, you must meet income and credit history requirements.
Conventional to VA Refinance
Conventional to VA Refinance is used for veterans who do not currently have a VA home loan, but are eligible for one and would like to switch over. Since VA loan rates are competitive with standard mortgage rates, it may be worth your while to switch if you qualify for a VA loan. You may be able to take out as much as 90% of the value of your home in cash (up to a loan amount of $144,000) depending on your qualifications. Your interest rate might also be lower if you refinance through the VA. You will have to pay a 2.15% or 3.3% funding fee (unless you have a Service Related Disability) when you use this loan, but the good news is that this fee can be financed so you do not have to pay anything out-of-pocket.
BENEFITS OF A CONVENTIONAL TO VA REFINANCE
- No monthly Mortgage Insurance is required.
- Your new interest rate may be lower. In fact, if your credit scores are not perfect you may be able to get a lower interest rate then you were previously paying on a conventional loan.
- No out-of-pocket closing costs if you choose. They can be added to the loan amount.
- With a VA Refinance, after you refinance your current mortgage, you can get up to 90% cash out.
Todd Abelson will be happy to help you decide which loan program will benefit you. Apply on-line REFI and get your free no obligation qualification today.
