Did you know refinancing is available for those with VA loans? Refinancing your VA loan comes with several advantages.
Advantages Refinancing Your VA Loan
A VA loan refinance (or also called IRR Refinance, VA to VA refinance or VA Streamline Refinance) can allow you to refinance your VA loan at a lower interest rate and enjoy a simplified process along the way.
- You generally do not need an appraisal
- You generally do not need employment or income statements
- You don’t have to show your certificate of eligibility if you’re refinancing a VA loan.
- You don’t have to prove future occupancy; you just have to show that you occupied the house for the past 2 years.
- You could reduce the term of your VA loan from 30 to 15 years
- You may have the option to reduce your out of pocket expenses and closing costs by accepting a higher interest rate.
- You have cash-out options when you refinance your VA loan.
Cash-Out/Debt Consolidation Options for VA Refinancing
You may be eligible to consolidate some or all of your debts like car loans, student loans and credit cards into your mortgage payment. With lower mortgage rates, this can save you money, or at least allow you to pay off debt sooner. You can also apply for cash-out to make those much needed home repairs or other expected costs with your home’s equity.
When a VA to VA Refinance DOESN’T Make Sense
The only time when your VA Loan refinance may NOT save you money is if you’re transitioning from a VA ARM to a VA fixed-rate. In most other cases, this is a great program that rewards veterans through home loan incentives. If you’re considering refinancing your VA loan, request to know all of the closing costs and fees at the start so you can work with your mortgage consultant and determine if a refinance is right for you.