VA Loans are a home mortgage that comes with many benefits for qualifying servicemembers. Professional Mortgage Solutions is here to help Rego Park, NY homeowners understand the requirements for VA Loans and get a sense of how and when to refinance a VA Loan. Read on below to understand more about VA Loans and refinancing options.
VA Loan Refinancing Options
Due to COVID-19, some homeowners are trying to lower their monthly mortgage costs and free up extra cash to pay for expenses. Luckily, the VA offers a very efficient, streamlined refinance process, and you may qualify to get a lower monthly payment and interest rate. There are a couple of different programs used to refinance, and one can even help you pull cash out of equity in your home!
VA Loan Streamline Refinancing
The VA Streamline Refinance, also known as the Interest Rate Reduction Refinance Loan (IRRRL), is one way to work to lower your VA Loan interest rate. These can be done quickly and are usually easy. After all, one is merely refinancing a VA Loan into another type of VA Loan with a lower interest rate. Rates can change quickly, especially in this type of market. Be sure to call Professional Mortgage Solutions to get an update before you make any hasty decisions. In April of 2020, rates are around 3.5% for standard and 3.65% for a jumbo loan. There are also many benefits to using IRRRL:
- You can have little to no out-of-pocket costs for the loan closing and paperwork fees and can even roll these costs into the mortgage.
- You can take advantage of competitive interest rates that can save you thousands, or possibly even more.
- You may be able to refinance without a home appraisal, and this is a huge benefit, since VA Loan appraisals can be very strict.
- You can refinance an adjustable-rate mortgage into a fixed-rate loan.
- You can finance qualifying home energy improvements that will improve your value of your home with this refinance.
VA Loan Cash-Out Refinancing
One of the other ways to refinance a VA loan is to get cash-out refinancing. This is the option to use if you are trying to get some cash flow out of your home equity. A VA Cash-out Refinance does not create a new loan, rather, it replaces your existing mortgage. Lenders will review how long you have had your current mortgage, how many payments you’ve made, and how long it will take to recoup the costs for providing the new loan in order to see if you qualify. There will be differing rules and policies on credit scores, appraisals, loan-to-value ratio and more depending on which lender you work with.
Professional Mortgage Solutions enjoys helping service members understand the many benefits of the VA Loan refinancing contact our Orchard Park, NY offices today with any questions.