Refinancing with a VA Loan-
The VA Home Loan program provides qualified homeowners with a simple way to take advantage of lower rates and decrease their monthly mortgage payment. Beyond that, VA homeowners can get cash back on a VA refinance and use the proceeds for a variety of needs, from paying off debt or making home improvements and much more. The current economic climate makes now a great time for military homeowners to take advantage of the numerous benefits found in a VA refinance.
Two main programs help VA borrowers refinance to a lower rate -- the VA Streamline Refinance, also known as the Interest Rate Reduction Refinance Loan (IRRRL), and the VA Cash-Out Refinance.
VA Streamline (IRRRL) Refinance-
Often called a "Streamline" refinance, the Interest Rate Reduction Refinance Loan (IRRRL) option is great for existing VA Loan holders who are looking to realize significant savings and take advantage of lower interest rates. You cannot take proceeds out of your home with this type of loan. This is simply to reduce your mortgage payment by reducing your interest rate.
A "cash-out" refinance is an option for those with a VA or conventional loan looking to take advantage of their home's equity to access cash for home improvements, emergencies, pay off debt, or any other purpose. Todays current market makes refinancing for home improvements an extremely popular option for would-be sellers that want a bigger home, instead of selling their home they can add on to their existing home by taking cash out for those additions.