VA Loan Refinance Options Miami, Fort Lauderdale, Florida
VA Loan Refinance Options is when you replace your Miami and Fort Lauderdale, Florida house VA Loan for a new loan, with the purpose to obtain a lower mortgage loan interest rate, decrease your mortgage loan monthly payments, or shorten the term of your loans by a streamline refinance loan or VA Cash-Out refinance loan.
So if you are a Miami and Fort Lauderdale, Florida veteran with a VA Loan and you’re having some problems to make your VA Loan payments on time, or you notice that your neighbors have a better mortgage loan interest rate than you, and you will like to reduce your monthly payments, or you require additional cash for a real need. Whatever is your case you should know that VA offers you a great loan program call VA Loan refinance options here in Miami and Fort Lauderdale, Florida, which allows you to save more of your hard-earned money in your own pocket, with lower mortgage loan rates and flexible underwriting standards.
Two Options, two ways to Refinance in Miami and Fort Lauderdale, Florida
IRRRL Refinance in Miami and Fort Lauderdale, Florida: The interest rate reduction refinancing loan or IRRRL, is a kind of VA refinancing mortgage loan for Miami and Fort Lauderdale, Florida veterans that has become in a great help for VA Miami and Fort Lauderdale, Florida liens struggling to refinance with conventional loans, for their low mortgage loan rates and flexible underwriting standards.
If you want to refinance through this VA program, first you need to have a VA loan, which are loans that belong to a special VA Loan program designed for Miami and Fort Lauderdale, Florida veterans and it can be issued by any VA Loan approved lender and are guaranteed by the federal government. The VA loan’s main attractive is that Miami and Fort Lauderdale, Florida veterans with qualifying credit and income can purchase a home with no money down, which makes buying a Miami and Fort Lauderdale, Florida home extremely attractive for those who have served in the military.
VA Loans also offer feature flexible requirements, no private mortgage loan insurance (PMI), and extremely competitive mortgage loan rates. In order to qualify for a VA Loan, a Miami, and Fort Lauderdale, Florida veteran must have served 181 days during peacetime, 90 days during war time, or 6 years in the Reserves or National Guard. You may also qualify as the spouse of a service member who was killed in the line of duty.
When you refinance your VA loan, your interest rate will be lower than your current VA loan rate, and for Miami and Fort Lauderdale, Florida veterans are even better, because one of the biggest advantages of refinancing through this program is that the process requires minimum documentation.
The VA Loan does not require a credit check or appraisal for refinances (some VA Loan lenders will still require these, as they have their own internal rules). VA home loan Miami and Fort Lauderdale, Florida liens, can refinance up to 100% of the home’s value, and they don’t have to pay for mortgage loan insurance. Through this streamline program, you also will pay a lower funding fee than you would pay under other VA loan options.
In order to qualify for a Miami and Fort Lauderdale, Florida VA Streamline, you must meet the following requirements:
- Be current on your VA mortgage Loan with no more than one 30-day late payment within the past year.
- Your new VA Loan monthly payment for the IRRRL must also be lower than the previous loan’s monthly payment. (The only time this condition does not apply is if you refinance an ARM to a fixed rate mortgage.)
- You must not receive any cash from the IRRRL.
- You must certify that you previously occupied the property in Miami and Fort Lauderdale, Florida.
- You must have previously used your VA Loan eligibility on the property you intend to refinance.
- An IRRRL can only be made to refinance a property on which you have already used your VA loan eligibility. It must be a VA to VA refinance, and it will reuse the entitlement you originally used.
- No appraisal or credit underwriting package is required when applying for an IRRRL.
- An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
- When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.
- No lender is required to give you an IRRRL, however, any VA Loan lender of your choosing may process your application for an IRRRL.
- Veterans are strongly urged to contact several lenders because terms may vary.
- You may NOT receive any cash from the loan proceeds.
VA Cash-Out Refinance in Miami and Fort Lauderdale, Florida: VA Cash-Out refinancing, is an option for VA Miami and Fort Lauderdale, Florida liens who have two mortgages and want to refinance them into one loan, with a lower rate. Unlike the IRRRL program, this Cash-Out refinance allows the borrower to pay off the first and second loans with the new loan, while also taking cash from the home’s value. Most lenders allow the VA loan refinance options Miami and Fort Lauderdale, Florida liens to refinance up to 100 percent of the home’s value to pay off the old mortgages.
Miami and Fort Lauderdale, Florida veterans generally choose to use the VA Cash-Out over other loan types because the period to pay off the loan is extended, and also, generally comes with a lower mortgage loan interest rate. Just like the VA Streamline Refinance loan, the home must be used as a principal dwelling by the owner with no set period of time that you have owned. To qualify for a Cash-Out refinancing in Miami and Fort Lauderdale, Florida you must have sufficient equity.
There are really two kinds of “cash-out” in Miami and Fort Lauderdale, Florida: one is where you actually get cash at closing (in the form of a check usually) and other is where you don’t actually get the cash, but you take the money and pay off other debts that are not the VA loan that you are taking out.
Some Miami and Fort Lauderdale, Florida borrowers believe that they can’t get a VA cash out refinancing unless they have a mortgage already backed by the Department of Veterans Affairs (VA). This is simply not true. In fact, you may be eligible for this type of loan even if your current loan is FHA, conventional, a USDA home loan or any other type of mortgage.
Many advantages can come with switching from one of these types of loans to a mortgage backed by the VA. It may be easier to get approved than with other programs, your monthly payments may be more affordable and you’ll get access to free mortgage counseling should your loan ever go into default. These are just some of the benefits VA Miami and Fort Lauderdale, Florida borrowers can expect when they refinance from another loan program.
When to Refinance?
VA Miami and Fort Lauderdale, Florida Liens, who are considering a VA Loan refinance options, should understand that synchronization is the most important when you are refinancing a mortgage loan. In most cases, it wouldn’t make sense to refinance a mortgage loan if you don’t plan on staying in that Miami and Fort Lauderdale, Florida home for the near-future, just like it wouldn’t make sense to refinance at a time when interest rates are too higher. Your goal should be to achieve a lower mortgage loan interest rate that cuts monthly payments, significantly, decreasing the amount of interest paid over the life of the mortgage loan.