If you have an existing VA loan and are looking to lower your payments, or you have a VA, FHA, Conventional or USDA loan and want to cash in on the equity you’ve already built, you have a couple options to capitalize on the super low interest rates available right now.
You can choose from a streamlined IRRRL option or a Cash Out Refinance. Depending on what kind of loan you currently have, and the benefits and costs of each type of refinancing option, we will help you compare and see which is the best choice for you.
What are my options?
An IRRRL (Interest Rate Reduction Refinancing Loan) is for veterans and military spouses who already have a VA loan. You can lower your interest rates and monthly mortgage costs, and it’s designed to give you minimal paperwork and roll closing costs into your loan and complete the refinance without an appraisal. If you’re looking for savings and to capitalize on low interest rates, and you already have an existing VA loan that you’ve paid a minimum of 6 payments on, this might be the right refinancing option for you.
A Cash-Out Refinance is an option even if you don’t have an existing VA loan. If you want to capitalize on the equity in your home and access funds for renovations, emergencies, existing debt, or other high-ticket costs, a cash out option could be the way to go. Whether you have a VA, FHA, Conventional, or USDA loan, you may qualify for this type of refinancing option; but there may be higher finance charges over the life of the loan.
Not sure which is right for you? Make sure to contact a lender at EPM to walk you through the recommendations and requirements for a VA refinancing loan so you can ensure you are making the responsible financial decisions that will benefit you in the long run.
We have noted this in previous posts, but it bears repeating. From the point of qualifying for a mortgage or refi loan, until the loan closes, make sure you aren’t creating any other new debt like applying for a new credit card, purchasing a car, or moving money around. You will also want to maintain your current employment status and refrain from changing jobs or making any big ticket purchases.
Our goal is to empower you with financial freedom and help you build your personal wealth. Reach out to a qualified lender at EPM today and never hesitate to contact us by clicking here!