Refinancing Types – Veterans Home Loan – VA Refinance Loan

*The Streamline refinance*, or Interest Rate Reduction Refinance Loan (IRRRL), is one of the best options for borrowers who already have a VA Loan and would like to refinance into a lower monthly mortgage rate.

military family-refinancing-types-for-va-loansRefinancing Types for Veterans Home Loan – This refinance type is relatively easy and can be completed quickly, due to the fact that borrowers are refinancing from one VA Loan product to another. With this type of refinance, there are several prominent advantages, including no required appraisal in some cases and no need to obtain another Certificate of Eligibility.

VA Refinance Loan – There are only a few requirements and stipulations. Primarily, the borrower is not allowed to receive any cash back from the IRRRL and the borrower must also certify that he or she currently or has previously occupied the property.

*The VA’s Cash-out Refinance* The VA’s Cash-Out refinance Loan gives qualified veterans the opportunity to refinance their conventional or VA loan into a lower rate while extracting cash from the home’s equity.

With the Cash-Out refinance, you have the opportunity to turn the equity in your home into cash. This shouldn’t be confused with a home equity loan, which is a second loan that runs alongside your current loan. The VA Cash-Out refinance loan replaces your existing mortgage.

Qualified borrowers can refinance up to 100 percent of their home’s value for mortgage debt in some cases. In others, homeowners can refinance up to a lower percentage and use the cash to cover debt payments and other needs.

Whether refinancing a conventional, FHA or USDA loan, the Cash-Out refinance option is available regardless of loan type. Many borrowers choose the VA Cash-Out refinance option over other types of loans because of the ability to repay the loan over a longer period of time, and typically, the Cash-Out refinance option comes with a lower interest rate.