How Can A Refinance of Your VA Loan Help You?
A great way to reduce your monthly mortgage payments or stabilize your mortgage loan is by refinancing. If you are currently a service member or veteran with a VA-backed home loan, you may qualify for an Interest Rate Reduction Refinance Loan or IRRRL. Lenders and Borrowers both like the IRRRL because of the ease of refinancing. Borrowers do not have to go through the standard VA lender underwriting process and the home doesn’t require an appraisal.
The IRRRL saves time, money/fees and paperwork. This type of Refinance is also called a “VA streamline refinance” due to the process being so simplified. Refinancing your VA Mortgage with an IRRRL allows you to improve your current VA loan by replacing it with a new one. The new loan offers different terms which will allow you to lower your monthly payment by requiring an interest rate reduction. The VA requires that a refinance must offer the veteran a Net Tangible Benefit. This means an IRRRL truly benefits our veterans through a reduced monthly payment.
The Cash-Out option gives qualified homeowners the opportunity to refinance their existing VA or non-VA mortgage to access the equity in their homes through cashback. The Cash-Out refinance option follows standard VA loan credit, appraisal, and underwriting processes. There are no restrictions on what you can do with the cashback. You can refinance a VA, USDA, FHA or conventional loan.