Chapter 6: VA's two major refinance options
The VA Interest Rate Reduction Refinance Loan (IRRRL), better known as a VA Streamline, and the VA Cash-Out Refinance. The VA Streamline helps current VA homeowners refinance into a lower interest rate and save on their monthly mortgage costs.
Major benefits of the VA Streamline include:
- Low cost and little paperwork
- No appraisal required in some cases
- You can fold closing costs into the loan
The Cash-Out refinance allows any eligible veteran to refinance into the VA loan program and extract cash from their home's equity. The process for obtaining a Cash-Out refinance is similar to the one for securing a VA purchase loan.
VA refinance loans are booming, providing qualified borrowers with advantageous interest rates. Veterans who understand their refinance options can lower their housing costs significantly, not just monthly but over the course of 15 or 20 years. That can save you tens of thousands of dollars.
Chapter 7: The importance of the VA Loan
New mortgage rules and regulations may mean even higher down payment requirements for both conventional and FHA loans. For the average military borrower, new down payment and credit hurdles may put homeownership out of reach.
That's what makes the VA loan and its no-down payment benefit so critical. Veterans who might otherwise struggle to purchase or refinance a home can grab a slice of the American dream they fought to protect.
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