If you haven’t refinanced your home you could be missing out on big savings. In fact, more than eight million homeowners are leaving cash on the table by not refinancing. While this number changes every year, what doesn’t change are the benefits of refinancing, especially as a VA Loan borrower. In this article, you’ll learn about the benefits of refinancing as a VA customer and how you can take advantage of them.

Why a VA Refinance?

The benefits of refinancing any type of loan can add up, especially when it comes to your home mortgage. With a refinance, you have the opportunity to:

  • Lower your interest rate
  • Refinance a Conventional or other mortgage into a VA Loan
  • Use your home equity for cash

Lower Your Interest Rate

Refinancing your loan can often decrease your interest rate anywhere from .5 to 1%. This may not sound like a large drop, however, it can end up saving you thousands over the course of your mortgage!

To see how much a refinance would save you, do some calculation on our handy Payment and Amortization Calculator.

Refinance into the VA Loan Program

Many homeowners purchased their home before they were eligible for VA benefits and may have a conventional mortgage with private mortgage insurance. Refinancing your loan into a VA loan will eliminate private mortgage insurance and allow you to experience the benefits of the VA loan program.

Use Your Home Equity for Cash

With a cash-out refinance, you can take money out of your home equity to use for a variety of reasons, including paying off debt, paying for school or other finances. Read on for more information on a cash-out refinance.

Two Options for a VA Refinance: Streamline and Cash-Out

When you refinance your VA loan, you can choose between the “streamline” option or a cash-out refinance.

A VA streamline refinance, or interest rate reduction refinance loan (IRRRL), will help you refinance into a lower interest rate and as a result, lower your monthly payment. A VA cash-out refinance will help you tap into your home’s equity and use the money from it for other purposes. The VA cash-out is not a home equity loan, which is a second loan that runs parallel to your current mortgage. Instead, it completely replaces your existing mortgage.

Which Option Is Best?

Your best choice will be determined by your personal needs and financial situation.

A VA streamline is best for:

  • Existing VA loan borrowers who want to refinance
  • Those who want a lower monthly mortgage payment

The VA cash-out refinance is best for:

  • Borrowers who want to refinance into the VA loan program from another loan type
  • Those who want to extract equity from their home for usable cash

Whichever option you choose, you’ll be sure to reap the benefits of a refinance.

If you are ready to refinance now or want to talk to a Homebridge Mortgage Loan Originator about your options, fill out the form below and a Mortgage Loan Originator in your area will be in touch shortly.

Quick Rate Quote

For Purchase Assistant and Refinance Adviser portions of LO pages

Related Articles

Renovation loans: what can they be used for? A renovation loan is an excellent option for homeowners who want to change up their living space with a few improvements, whether big or small. It provides low-interest funding compared to credit cards, which carry an average 15.91% interest rate. When compared…
Read More of the post RENOVATION LOANS: WHAT CAN THEY BE USED FOR?

USING GIFT FUNDS TO BUY A HOME For many homebuyers, gift funds are a needed boost to help them cover the necessary down payment on their dream home. Although it’s common practice to receive these financial gifts from friends and family, there are still many guidelines you should consider before…
Read More of the post USING GIFT FUNDS TO BUY A HOME

  2022 VA Loan Limits have increased The Department of Veterans Affairs (VA) increased 2022 loan limits for potential VA homebuyers across the country! This means that active and retired military service members and their families now have even more purchasing power when shopping for their dream home. In some…
Read More of the post 2022 VA LOAN LIMITS HAVE INCREASED

Chapman Lending Team at HomeBridge Financial I'm inviting you to join me in "PROUD to Walk," the inaugural charity event hosted by The Navy Marine Corps P.R.O.U.D. Foundation from May 15 to May 23, 2021. Every year I've been a proud sponsor of "PROUD to Walk," and I'm happy to…
Read More of the post JOIN ME AS I SUPPORT “PROUD TO WALK” FOR THOSE WHO SERVE