Military families with current mortgages may benefit from a VA refinance loan now while rates are low. To refinance or not refinance, that is the question. Weighing your reasons for considering a refinance transaction can help you decide whether to go ahead and do it.
Whether you’re current loan is backed by the VA or not, a VA refinance loan is available to most military members with minimum service durations. The VA home loan program offers up to 100% loan-to-value refinancing and the security of the federal guarantee.
Several types of VA refinancing options are available to help achieve specific goals. Maybe your goal is one of these:
- Lower your monthly payment
- Reduce your interest rate
- Build faster home equity
- Repay your loan in less time
- Get cash for a major expense
- Consolidate debt
- Eliminate Private Mortgage Insurance (PMI)
- Switch from an ARM to a fixed rate mortgage
- Streamline your current VA loan to today’s low rates
Once you’ve identified your family’s goals for refinancing, an experienced VA loan professional can help you select one of these options:
- VA rate-and-term refinance
- VA cash-out refinance
- VA Streamline refinance
A VA rate-and-term refinance can help military families with non-VA loans possibly lower their payments, interest rates and even eliminate mortgage insurance premiums. VA cash-out refinance loans can provide families with equity in their homes some much needed cash to pay important expenses and consolidate debt. And, VA Streamline refinance loans can help current VA borrowers get lower interest rates and payments with less income and credit qualifying than regular refinance loans. All three types of VA refinance loans are available in a variety of terms. Shorter terms (like a 15-year mortgage) can help homeowners build faster equity and repay their loans in the shortest amount of time.
Talk with your VA loan professional for more information.
Ashleigh Downing is the Social Media Director for iFreedom Direct. She has been working with and writing about veteran’s benefits and issues for the past three years.
iFreedom Direct is a top national VA lender that specializes in assisting active members and retired veterans of the Armed Forces with VA loans.