You may have already read the article on home loans that are available for veterans. VA loan refinancing is also an area where veterans can save some serious money through the VA Mortgage Center.
There are three different refinancing options available through the VA Mortgage Center.
1. Cash-Out Refinance is when you receive in cash, the difference between your original mortgage and the amount that you have already paid off on it. This is a good option to choose if you have a specific project in the works that is going to require a set amount of money. This money can also be used to pay off other debts or bills. It is possible to get as much as 90% of the value of your home.
2. VA Streamline Refinance lets you simply take your current loan or mortgage and refinance it to a more desirable rate. This is best for veterans who simply want to get a better deal on their mortgage and have no need for additional services. VA loan refinancing is done without any closing costs and no appraisal or mortgage insurance is needed either. The funding fee for VA refinance and interest reduction is only .5%.
3. Conventional to VA Refinance is used for veterans who do not currently have a VA home loan, but are eligible for one and would like to switch over. Since VA loan rates are much better than standard mortgage rates, it would be worth your while to switch if you qualify for a VA loan. You may be able to take out as much as 90% of the value of your home in cash depending on your qualifications. Your interest rate might also be a lot lower if you refinance through the VA. You will have to pay a 2.2% funding fee when you use this service.
As mentioned above, you will not have to pay any mortgage insurance with these loans. Instead you will pay a lower VA Funding Fee, which are explained above, whether you’re a regular veteran or a reservist. A VA refinance loan may be exactly what you need to help make financial dreams become realities. Contact your VA Mortgage Center to get more information about VA loan refinancing and to find out what you qualify for.