Want To Refinance? Here’s What You Need To Know

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Refinancing a loan comes into play for various reasons. Under the Department of Veterans Affairs, there are a few refinance loan options that an eligible borrower can choose from.

VA home loans, including refinance loans, have service requirements for qualified veterans, servicemen on active duty, retired and discharged service personnel, selected reserves, and National guards.

Surviving unremarried spouses of veterans who died in service and spouses of service members that are missing in action or a prisoner of war can also qualify for this type of loan.

Looking to refinance? Ask our lenders.

VA Refinance Loans

VA Streamline Refinance
The Interest Rate Reduction Refinance Loan (IRRRL), also known as the VA streamline refinance is one of those options. Its main purpose is to get a lower interest rate for your current VA home loan. With that, your monthly mortgage will be reduced.

VA Cash-out Refinance
On the other hand, the VA cash-out refinance allows borrowers to tap into their home’s equity, refinance their current loan as much as 100% of the property’s loan-to-value ratio then cash out the difference to aid other financial purposes.

Property Occupancy

When refinancing, the property should be the borrower’s primary residence. A rental property or vacation home would not qualify for a refinance loan. On some instances, refinancing a property that has your residence history can be allowed.

Certificate of Eligibility

When seeking to refinance, you need to certify your eligibility through a COE. This can be secured in various ways. Either your lender can request it for your or you can request it yourself through the VA’s eBenefits website.

Closing Costs

When a loan closes, it means there are costs that are usually paid out of pocket by the borrower. Usually, these costs are about three to six percent of the loan balance. But with a VA refinance loan, these costs could be rolled into the loan.

Consult our lenders and see if you qualify.

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