The VA refinance loan program can help veterans who are looking to get a lower interest rate on their mortgage. It is also a good option for those who have had trouble staying current with their monthly payments and want to get back on track.
The rates vary depending on the type of loan, as well as your credit history and employment status. This article, the moreirateam will go in-depth about what VA refinancing loans are, how they work, and why you should consider applying for one today!
A VA refinance loan is a great option for our veterans, as the loans carry lower rates than their mortgage. Recent economic downturns are hard on just about everyone and being able to lower your debt with less hassle can be such a relief.
VA Loan Refinance Benefits
For veterans, a VA Refinance can have two different benefits. The first being a lower interest rate; the second, catching up on missed payments for those veterans who have had trouble staying current with their monthly mortgage costs.
By refinancing with a VA loan, you will have the opportunity to lower your interest rate by up to two points. This will save you a significant amount of money over time, especially if you have an ARM loan that is scheduled for future increases in rate (such as those with teaser rates).
Another benefit of refinancing with VA loans is catching up on missed payments due to financial hardships or unemployment.
VA Refinance Options – Streamline and Cash-Out
The options veterans have for a VA refinance loan depending on the status of their current mortgage. Veterans who are in good standing with their lender may apply for a VA streamline refinance loan that will let them keep their existing home and make lower payments.
Veterans who have fallen behind or those interested in moving to another property can use a cash-out non-streamlined refinance loan. Rates differ a little bit between the two, but generally are lower for cash-out loans.
Another option for those who are no longer satisfied with their current home is a VA refinancing of rental property, which can offer lower rates and more favorable terms than mortgages on investment properties; this would allow the veteran to rent out their own property instead of paying someone else’s mortgage payments in addition to theirs.
VA Refinance Rates
Comparing the rates below, you can see there are differences between the types of VA refinance.
VA refinance rates for Streamline (IRRRL) are:
- A VA refinancing loan comes with an interest rate of 2.90% (2.95% APR) with a 30-year fixed term.
- A VA refinance loan has a 2.500% (2.799% APR) interest rate for the 15-year fixed-rate type.
VA refinance cash-out rates are as follows:
- Loans rates start at 2.990% (3.284% APR), if you take out a 30 year fixed rate loan.
- Veterans typically pay 2.5% percent interest rates for a 15-year term, which ends up being 3.049% APR.
Find Out if you Qualify for a VA Loan Refinance
Refinancing your VA loan is a great way to get a lower interest rate on your mortgage, and you won’t need to worry about future rate hikes. To find out more about the benefits of refinancing and how it could help our veterans, call the pros at the moreirateam today.
