VA Approved Lender USAVA | NMLS ID 966439 | MB 0921703
Jun
01 2016

VA Basics: Refinance Rules


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The VA Loan program gives eligible veterans and their families access to refinancing options that either lower monthly mortgage costs or take cash out of a home’s equity.

There are two options available for VA borrowers to refinance their homes: the VA Streamline Refinance, also known as the Interest Rate Reduction Refinance Loan (IRRRL), and the VA Cash-Out Refinance.

refinance

Two Refinance Options

The “streamline” refinance, referred to as the Interest Rate Reduction Refinance Loan (IRRRL) option will most likely result in a lower monthly mortgage rate. This option allows borrowers to refinance into a fixed rate or adjustable rate mortgage (ARM) loan.  However, if the borrower is refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.

The benefits include:

The VA has the following set requirements:
The Cash-Out Refinance Loan refinances a conventional or VA loan into a lower rate and allows the borrower to take out cash from the home’s equity. The veteran may refinance up to a 100 percent of the home’s value to put towards debt or refinance at a lower interest rate and use the cash for anything.
The benefits include:
The requirements are as follows:
Our goal at USAVA is to work with veterans to achieve the best possible financing and lower their interest rate and monthly mortgage payment. Please contact one of our loan specialists 888-842-0490 today to get your process started!