VA Loan VA Refinance Rate Miami
VA Loan Va Refinance Rate Miami time to change your house loan for a new loan you can obtain a lower interest rate or decrease your monthly payments.
Sometimes you are stressed out since you can’t make your house loan’s payments on time, or you require additional cash now, for a real need. Perhaps you need to pay your offspring college tuition, or maybe it’s time to remodel your house, and make improvements that will increase your home value for a future sale. Maybe you just want to take advantage of lower interest rates so you can save more of your hard-earned money in your own pocket. So now it may be the time for you to consider the many options available for refinancing your VA Home Loan.
WHAT IS REFINANCING?
Refinancing is when you replace your house loan for a new loan, since that way you can obtain a lower interest rate, decrease your monthly payments or shorten the term of your loans by a streamline refinance or VA-to-VA Loan. For veterans this kind of mortgage is known as the interest rate reduction refinancing loan(IRRRL). The IRRRL have become a great help for VA liens struggling to refinance with conventional loans, for their low mortgage rates and flexible underwriting standards. In most cases, a lender with expertise in VA loans should be able to complete the loan in a few months.
If you want to refinance, first you need to have a VA loans, which are loans that belong to a special loan program designed specifically for veterans and it can be issued by any VA approved lender and are guaranteed by the federal government. The VA loan’s main attraction is that veterans with qualifying credit and income can purchase a home with no money down, which makes buying a home extremely attractive for those who have served in the military. VA loan VA refinance rate also offer feature flexible requirements, no private mortgage insurance (PMI), and extremely competitive mortgage rates. In order to qualify for a VA Loan, a 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. VA Loan VA Refinance Rate Miami Fort Lauderdale Florida
WHY VA IRRRL GOOD FOR YOU POCKET?
When you refinance your VA loan, your interest rate will be lower than your current VA loan rate, and for veterans is even better, because one of the biggest advantages of refinancing through this program is that the process requires minimum documentation. The VA does not require a credit check or appraisal for refinances (some lenders will still require these, as they have their own internal rules). VA home loan liens, can refinance up to 100% of the home’s value, and they don’t have to pay for mortgage insurance. Through this streamline program you also will pay a lower funding fee than you would pay under other VA loan options. The fee is 0.5 percent of the total loan amount and can be added to the loan balance. Usually, almost all active duty or honorably discharged service members are eligible for a VA purchase or streamline refinance loan.
HOW TO PAY CLOSING COST?
A loan closing costs can be added into the cost of the loan, allowing veterans to refinance without expenses. Sometimes it is also possible for the lender to take the brunt of the cost in exchange for a higher interest rate on your loan. The loan may not exceed the sum of the balance on the existing VA loan, plus allowable fees and closing costs, including funding fee and up to 2 discount points. You may also add up to $6,000 of energy efficiency improvements into the loan.
NOTE: Adding all of these items into your loan may result in a situation in which you owe more than the fair market value of the house, and will reduce the benefit of refinancing, since your payment will not be lowered as much as it could.
HOW TO SHOP A IRRL?
No lender is required to make you an IRRRL, however, any lender of your choice may process your application for an IRRRL (it doesn’t have to be the same lender from whom your originally obtained your VA loan). Veterans are strongly urged to contact several lenders. The terms offered by lenders depend on the lender that you contact. Remember that any lender could make you an IRRRL and the only cost required by VA IRRRL is a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan. A certificate of eligibility is not required. Your lender can use the VA’s e-mail confirmation procedure for interest rate reduction refinance instead of a certificate of eligibility. Some lenders offer IRRRLs as an opportunity to reduce the term of your loan from 30 years to 15 years. While this can save you a lot of money in interest over the life of the loan, if the reduction in the interest rate is not at least one percent (two percent is better) and lots of new loan costs are add into the new loan, you may see a very large increase in your monthly payment. An IRRRL may be done with “no money out of pocket” by adding 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. Remember that the interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage. Finally you must not receive any cash from the loan proceeds.
WHEN SHOULD I REFINANCE?
VA Liens, who are considering a VA Loan VA Refinance Rate, should understand that synchronization is the most important when you are refinancing a mortgage. In most cases it wouldn’t make sense to refinance a mortgage, if you don’t plan on staying in that home for the near-future, just like it wouldn’t make sense to refinance at a time when interest rates are too high. Your goal should be to achieve a lower interest rate that cuts monthly payments, significantly ,decreasing the amount of interest paid over the life of the mortgage. VA Loan VA Refinance Rate Miami Fort Lauderdale Florida
HOW TO QUALIFY FOR A VA IRRRL?
You must know the following aspects:
- Be current on your mortgage with no more than one 30-day late payment within the past year until the time of refinancing.
- Your new 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.
- You must have previously used your VA Loan eligibility on the property you intend to refinance. (You may see this referred to as a VA to VA refinance).
PERSONS WHO MAY QUALIFY FOR A VA IRRRL?
- Eligible veterans.
- Active duty service members.
- Current Reserve and National Guard members (usually after 6 years of reserve service).
- Honorably discharged service members
- Certain surviving spouses.
Note: To be eligible, the Veteran/Service member must have been discharged under conditions other than dishonorable and meet length of service requirements. As a requirement for a VA home loan, the Veteran, the Veterans’ spouse, or dependent child must certify occupancy for the property.
ANOTHER WAY TO REFINANCE:
Another way to VA refinance, is the Cash-Out refinance, which is an option for VA 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 liens to refinance up to 100 percent of the home’s value to pay off the old mortgages. 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 interest rate. Just like the VA Streamline Refinance loan, the home must be used as a principal dwelling by the owner. There is no set period of time that you must have owned your home, however, must have sufficient equity and an existing VA home loan to qualify for the loan. VA Loan VA Refinance Rate Miami Fort Lauderdale Florida
Note: Some lenders may not allow cash-out refinances because of their internal rules.
Speak with a Home Loan Specialist today
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