You can refinance your VA Loan to lower your payments or tap into your equity!
Do you need additional cash because your need help paying a college tuition or bills? Maybe you would like to update your house with a new kitchen or bath. Or, maybe it’s just plain cash that you need.
Now is the time to take advantage of lower interest rates so you
can keep more of your hard-earned money in your own pocket.
Consider the following for refinancing your VA Loan:
# 1: VA Loans for Home Equity Refinancing
Get the cash you need through refinancing. If you want to consolidate your high interest rate credit cards,SocalVALoans.com can help. You can pay for college tuition, or buy a new car. Thinking of remodeling because your house is outdated? Refinance to get cash for the upgrades that your house needs.
When you refinance a VA refinance loan, your current real mortgage is paid from the proceeds of your new VA mortgage. The same borrower(s) uses the same property. This is called a “Cash Out” Refinance.
Only homes that are used as the principal residence by owner can use the Cash-Out Refinance. That owner can refinance up to 90% of the appraised value (except in Texas). Your home must have enough equity to qualify for this loan and there is not minimum amount of time that you must own your home! Plus, all closing costs can be included too if the property can stand the loan to debt ratio.
#2 VA: Streamline Refinance/ Interest Rate Reduction
Streamline Refinance or Interest Rate Reduction Loan is another program designed to assist homeowners who want to refinance their VA loan. It is a way for current VA loan homeowners to lower their interest rate with little or no out-of-pocket costs. Streamline Refinance was created to be
faster and with less documentation than a typical loan.
An Interest Rate Reduction Loan allows the homeowner to
refinance the current mortgage interest rate to a lower rate than what is
currently being paid. This is type of loan is only available to those veterans who are
refinancing their original VA mortgage and who use their original eligibility.
Streamline Refinance let the homeowner refinance their mortgage with no
out-of-pocket expenses. That is why they are sometimes referred as “No Cost Streamline”.
Sometimes, by letting the lender pay the costs, an higher interest rate is given.
Or, another option that lets you obtain market rates is to roll the closing costs into the new loan.
There are some things to note of the Streamline Refinance or Interest Rate Reduction Loan.
They are the following:
- The veteran/homeowner cannot receive any cash back.
- The VA does not require an appraisal, or any income or employment verifications.
- No credit report or termite reports will be done but the mortgage must have been continuously paid and up to date as agreed for the last twelve (12) months at the time of refinancing.
- No assumptions are allowed.
- Any other liens must be subordinated to the VA loan.
This loan can be done with “no out of pocket money” by including all
costs in the new loan or by making the new loan at an interest rate
high enough to enable the lender to pay the costs.
VA Refinance Loans is a post from: VA Home Loans 858-922-7899
No Comments
No comments yet.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.