Tips For Veterans To Enjoy Low Interest Rates
Tips for Veterans – The HomePromise VA loan refinance program offers eligible veteran and active duty military homeowners a unique way to access lower interest rates and reduce their regular mortgage payments*. Apart from that, military homeowners can receive cash back via a VA refinance and make use of the cash for various needs. As a veteran, you should carefully consider the benefits of this refinancing opportunity because it may save you a significant amount of money monthly, and reduce your total monthly payments significantly. Here is a brief description of the two VA loan refinance options and the requirements to process your application.
Cash-out VA Refinance
The cash-out refinance option can be used to refinance virtually any kind of loan with the option of obtaining cash additional cash at closing, pay off credit cards or make home improvements. Homeowners also use this kind of refinance cover several emergency expenses. It is also a great way to get one fixed payment at a relatively low interest rate to pay off debts acquired at high interest rates. These may include auto loans and credit card debts. Our HomePromise VA fixed rate cash-out refinance is better than a bank or credit union adjustable rate home equity loan because it gives you the certainty and security of a fixed rate.
The conditions for eligibility are the same as those for a VA loan for home purchase. So you need to meet the basic service requirements for active-duty or be an eligible veteran. But if you have already obtained a VA loan, your approval process will usually be fast. The closing costs will be added to the loan so you will not need to pay out of pocket expenses other than your appraisal fee..
VA Streamline Refinance
This option is also known as the interest rate reduction refinance loan (IRRRL). It gives existing borrowers of VA loans the chance to avail themselves of lower mortgage interest rates or to refinance to a fixed-rate mortgage from an adjustable rate mortgage. Apart from saving thousands of dollars via lower interest rates, income verification is not required and there is also no need to apply for another certificate of eligibility. The application process is very short and streamlined, usually taking just about three weeks. Closing costs are included in the loan so you will not need to incur any out-of-pocket costs other than your appraisal fee.
You can only refinance a home on which you have previously used your VA loan eligibility. To complete the application process, you will need to provide one of our HomePromise licensed loan officer with some basic information about yourself and your property including acceptable identification (like a driver’s license), and other particulars for your home like insurance. Then you can work out the terms of the loan and complete the necessary paperwork to close the loan.
A veteran who is considering VA loans refinance should take time to consult a VA HomePromise Corporation loan specialist so the best interest rates can be obtained for the loan refinancing.
*HomePromise provides refinance mortgage loans to clients. In some cases a refinance may lower your monthly payments but increase your total finance charges over the life of your loan.