What is refinancing. Refinancing is when you replace your house loan for a new loan, with the purpose to obtain a lower interest rate, decrease your monthly payments or shorten the term of your loans by a streamline refinance or Cash-Out refinance. What is refinancing Miami Fort Lauderdale Florida
So if you are a veteran with a VA loan and you’re having some problems to make your loan payments on time, or you notice that your neighbors have a better interest rate than you and you will like to reduce your monthly payments, or you require additional cash now, for a real need, or maybe it’s time to remodel your house, and make improvements that will increase your home value’s for a future sale. Whatever is your case you should know that VA offers you a great program call VA loan refinance, which allows you to save more of your hard-earned money in your own pocket, with lower mortgage rates and flexible underwriting standards. So now it may be the time for you to consider the many options available for refinancing your VA home loan. Where Any lender with expertise in VA loans should be able to complete the loan in a few months. What is refinancing Miami Fort Lauderdale Florida
TWO WAYS OF REFINANCE
The VA loan program offers you two ways of refinancing, the first one is The Interest Rate Reduction Refinancing Loan, or IRRRL, which is a kind of refinancing mortgage for veterans with conventional loans. If you want to refinance through this program, first you need to have a VA loan. 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. You must not accept any cash. What is refinancing Miami Fort Lauderdale Florida
The second way to 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 with no set period of time that you have owned. To qualify for a Cash-Out refinance you must have sufficient equity.
BENEFITS ABOUT WHAT IS REFINANCING
VA loan refinance offers to the applicants more flexible underwriting standards.
- VA applicants don’t have to pay non allowable closing cost like lender document fees, recording fee above $17, notary fees, Transaction Coordinator fees, broker fees, etc. That you would have to pay with other loans.
- Lower interest rates than other VA loans and standard loans. Providing to the applicants additional cash flow each month.
- Applicants have the ability to change the terms of their loan, switching from an adjustable rate to a fixed-rate, or a 30 year to a 15 year loan in order to pay off their mortgage sooner.
- With the Cash-Out refinance, applicants can get cash out from the equity in their home to help pay other obligations.
- Additionally, applicants wanting to refinance from a different loan program into the VA Loan can do this through the Cash-Out refinance program. What is refinancing Miami Fort Lauderdale Florida
WHEN TO REFINANCE?
VA Liens, who are considering a VA Loan refinancing, 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 higher. 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. What is refinancing Miami Fort Lauderdale Florida
REFINANCE CLOSING COST?
There are some expenses that the applicants have to pay. These expenses are known like closing costs, which represent the actual cost of doing a loan, and they can come in different forms. A loan closing costs can be add 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. Keep in mind that the types of fees and their amounts vary greatly by geographic location. What is refinancing Miami Fort Lauderdale Florida