Refinancing for VA
Available to veterans who have an adjustable rate mortgage and owe more than they can afford, a refinance loan may help alleviate some of that stress by lowering your rate. But that’s not the only reason to refinance your loan. The ability to simply get a lower rate, turning your adjustable mortgage rate into a fixed one or consolidating two mortgages into one can be other reasons to refinance your VA loan. There are commonly two different refinance programs people with VA loans tend to take advantage of.
Interest Rate Reduction Loans (IRRL)
This loan could get you a lower interest rate.
An IRRL will allow you to enjoy a lower interest rate by borrowing near, or all, of your current loan, plus a 1/2 percent IRRL-funding fee, though some qualifiers may be exempt from the fee. The primary requirement for IRRL loans is that the borrower cannot receive any cash back, but because fees and closing costs can be added into the new loan, there are often minimal to no out-of-pocket expenses to the homeowner.
New VA Refinance Home Loan
While allowing veterans to lower the rate of the conventional or VA loan, and take cash out of the home’s equity, the VA Refinance Home Loan becomes your new mortgage. Eligible homeowners have the opportunity to refinance up to the full value of their mortgage under certain circumstances. Homeowners may also be able to refinance to a lower interest percentage.
Experience the benefits of lowering your interest rate or monthly payment, obtain cash or consolidate your debt with a new VA refinance loan.