VA Loan Refinance
You have two choices for refinancing a VA mortgage: Reduce your interest rate with a VA refinance loan (VA IRR) or obtain cash with loan cash out refinance (LDR). All or most of these products offered here are sourced from reputable, successful, income providing financial partners. They are not “investors”. In other words, you do not get “money in a box”. But, they are responsible for collecting the payments on behalf of the government.
A VA refinance calculator is a free tool to estimate your savings. A basic VA refinance calculator uses historical data to present loan term, interest rate, balloon payment and monthly payment amount for each loan to present a comparison of expected savings with current loan terms. This tool can be a valuable way to start comparing financial packages. It is an excellent place to begin the comparison process.
VA home loan options have many attractive features that can save you thousands of dollars on interest rates and closing costs. Most conventional fixed-rate mortgages come with adjustable interest rates. These higher interest rates on existing loans lock borrowers into the loan terms for years. If you refinance into a VA mortgage, the new terms will allow for lower interest rates, thereby reducing the cost of refinancing. This is one reason why VA home loans often have higher closing costs than conventional mortgages.
Another advantage to VA refinance loans is the freedom mortgage insurance provides. VAMEX provides freedom from the traditional mortgage insurance system where lender approval of refinance loans is often dependent on income and credit history. Freedom mortgage insurance allows individuals with bad credit to borrow money based on their future income potential. Freedom mortgage insurance has variable rates that are tied to prevailing market interest rates.
When searching for affordable interest rates, it is important to shop for the right lenders. Most conventional lenders do not offer refinance options for veterans. There are several VA lenders that do offer refinancing opportunities for veterans. Some of these lenders offer competitive refinance rates that are much lower than what most conventional mortgages offer.
Most conventional loans have appraisal requirements in order to qualify for financing. A mortgage loan that does not require an appraisal is referred to as a negatively amortizing loan. VA loans have no appraisal requirement and can help former veterans qualify for a more affordable mortgage. Many of these loans also have no PMI premiums.
In order to receive a VA refinance, veterans must meet certain criteria set forth by the Department of Veterans Affairs. In order to qualify for this opportunity, the surviving spouses of deceased military service members need to petition the lender to approve a VA refinance. The lender will also need to verify that the applicant is eligible for a VA loan through another lender.
After approval of a VA refinance, borrowers have the opportunity to pay off the new mortgage loan with their money. This will save veterans money and time as they will not have to pay closing costs or fees on a new mortgage loan. For those who served in the Armed Forces, a refinance can be a lifesaver. For those who have been out of the service, a refinancing can put them back on the path to financial freedom. Contact a lender today about a VA refinance.
A VA refinance does not have to be paid back like a traditional mortgage loan. Refinancing requires no monthly payment, prepayment penalties or interest rates. Because it does not require a down payment, veterans may qualify for a larger principal balance and save more on interest.
There are several sources where you can obtain a VA refinance. The Department of Veterans Affairs offers a list of approved lenders on their website. To find out if you are on the approved lender’s list of approved lenders, call your local Loan Office. The US department of housing and Urban Development also has a list of approved lenders at their website. The United States department of Veterans Affairs website contains a list of accredited banks, credit unions, mortgage companies, trust companies, pension providers, and investors.
You can find a lender that specializes in refinancing VA loan obligations. You will need to provide your name, birth date, Social Security number, address, and email. Once you apply, the lender will send you a quote based on the information you provided above. In most cases, lenders offer competitive interest rates and terms, as well as options such as additional principal repayment, lower initial payments, and longer terms. Make sure you compare APR and terms before signing up for a new loan commitment.