Many homeowners feel that receiving a VA home refinancing loan is a tricky process with daunting and unknown legal territory but as we’ve discussed in our blogs previously, that is not the case. In fact, getting a VA home loan refinanced is a truly simple and easy process, especially with the options available. There are a few VA home loan options but two raise above the rest as the most beneficial and widely used refinance options for veterans.

The IRRRL or Streamlined Refinancing Option

One of the most common options for veterans looking to refinance their home loan is the VA Streamline refinance. This refinancing alternative is also referred to as an Interest Rate Reduction Refinancing Loan or an IRRLL. Many veterans utilize this option because it offers homeowners the lowest interest rates possible on their home loans. This can mean lower monthly payments as well as more money towards principal payments, other monthly bills or just to put in savings each month. However the veterans decide to spend the money saved through an IRRLL is up to them, but one thing is for sure, this type of refinancing option gives them the ability to pay less towards their home and spend more where they see fit.

Another benefit of a VA Streamline Refinance Loan is that it provides homeowners with little or no out of pocket expense regarding closing the refinance loan. One may be ask why it is called a streamline loan. Well, that is because the entire refinancing process is streamlined for the convenience of the homeowner. If someone already has a home loan through the VA, they can reuse all the same information without needing to complete new credit checks or appraisals. This shortens the refinancing process considerably, resulting in complete refinancing with lower interest rates in roughly a month.

The Option of Receiving a Cash-Out Refinance

The name of this top refinancing option says it all. This alternative to a traditional refinance offers homeowners the opportunity to receive cash-back through their VA refinance. Instead of taking out another loan for an expense such as a car or college tuition, a homeowner can roll that price into the home loan through a refinance and receive cash to purchase the expensive item.

This loan is also termed as a Home Equity Refinancing because of how it works with receiving the cash-out. It works in conjunction with the amount of money already paid towards the loan as well as the amount of home equity that may have been acquired. To use an example of how the process works for homeowners from one of our previous blog posts, “if the original home loan was for $250,000 and $15,000 of the loan has been paid, veteran homeowners can refinance for the original $250,000 loan and may receive $15,000 in cash back.” This refinancing option is simple enough and quite effective in securing low interest rates as well as a single monthly payment for all large expenditures.

VA Home Loan Refinancing

With the top two options above, receiving a VA home loan refinance is simple and easy. If you have further questions or would like to explore the option of receiving a VA refinancing loan for your home mortgage, please call us today and we will put you in direct contact with a loan officer in your area to answer all your questions.

*Loan subject to credit approval. Restrictions apply. Rates subject to change at any time.

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