Get Better Rates And Terms By Refinancing A VA Loan

Are you a current homeowner who purchased your property with a VA loan, and interested in paying less for your monthly mortgage payments and obtaining a better loan rate? You could be eligible to refinance your original VA loan for a new mortgage with better rates and terms. If you are interested in learning more about your VA loan refinancing options in the areas of Palm Beach, Tri-County, or Broward County, Florida, CTC Mortgage can help. Read on to learn about the two main types of VA loan refinancing options and which one may be right for you.

IRRRL: VA Streamline Refinance

An interest rate reduction refinance loan, (IRRRL), also known as a VA streamline refinance, allows a borrower that has served in the United States military who currently has a VA loan the opportunity to replace their existing mortgage for a new loan with lower mortgage payments and interest rates in a simplified, fast process. VA streamline loans require less documentation and paperwork, expediting the application process, and in some circumstances, the loan’s closing costs can even be included in the refinancing of the new loan. Additionally, unlike the other VA loan option known as a VA cash-out, the property isn’t required to be the borrower’s primary residence.

VA Cash-Out Refinance

A VA cash-out refinance, U.S. military members or veterans refinance an existing VA loan backed by the U.S. Department of Veterans Affairs for a new loan with more favorable rates and terms, and take cash out of the property’s equity. Borrowers that take advantage of a VA cash-out refinance can use the funds for whatever reason they choose, including renovating or remodeling the property, funding desired purchases, paying down debt, etc. Borrowers seeking a VA cash-out refinance are required to live in the home as their primary residence, and should already have a substantial amount of equity built up in the property. It is important to note that closing costs will be required again with this type of refinance.

How To Qualify For A VA Loan Refinance

In order to qualify for a VA loan refinance, there are certain eligibility requirements that must be met, which typically include:

• You must have served in active military duty for at least 181 days during times of peace, or 90 days during war, or,
• You must have served 6 years or more in the National Guard, other military branches, or
• In certain situations, you may qualify if you are the surviving spouse of a veteran who passed away during service or as a result of service.

VA Loan Refinance Assistance

If you have served our nation’s country in the military and want to learn more about refinancing your home that was purchased with a VA loan in Palm Beach, Tri-County, or Broward County, Florida, contact CTC Mortgage today for a consultation.

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