What is a VA Loan Refinance Miami
What is a VA Loan Refinance ?
Through the VA Loan, eligible veterans, service members and surviving spouses of service members have access to special refinancing options designed to lower monthly mortgage costs or provide the ability take cash out of a home’s equity. Now, are you going to ask yourself What is a VA Loan refinance Miami?
Benefits of VA Loan Refinancing in Miami
Those interested in reducing their mortgage rate should consider the VA Streamline refinancing, otherwise known as an IRRRL (Interest Rate Reduction Refinance Loan). With the VA Streamline, homebuyers have the opportunity to lower their interest rate, providing additional cash flow each month.
Additionally, homeowners 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.
Those contemplating taking cash out of their home’s equity should consider the VA Cash-Out refinance. With the Cash-Out refinance, homebuyers can use the equity in their home to help pay other obligations.
Additionally, homebuyers in Miami wanting to refinance from a different loan program into the VA Loan can do this through the Cash-Out refinance program.
What are the Two Great VA Loan Refinancing Options in Miami?
- VA Interest Rate Reduction Refinancing Miami
- VA Streamline (IRRRL) Refinance
Often called a “Streamline” refinance, the Interest Rate Reduction Refinance Loan (IRRRL) option is great for existing VA Loan holders who are looking to realize significant savings and take advantage of lower interest rates.
The VA Streamline, which is officially known in Miami as an Interest Rate Reduction Refinance Loan, or IRRRL, was created so that eligible homeowners had the opportunity to receive a lower rate and decrease monthly expenses.
In order to qualify, the homeowner is required to currently have a VA Loan and must also receive a lower interest rate and lower monthly payments with the refinance. That is unless the borrower is refinancing an adjustable rate mortgage to a fixed rate.
The VA does not require a credit check or home appraisal to receive a VA Streamline Refinance; however, in today’s lending climate in Miami, those considering a Streamline Refinance should expect lenders to look at credit scores as well as order a home appraisal.
With the Streamline Refinance, origination fees and total costs are capped to keep the up-front costs as low as possible for the homeowner.
VA Cash Out Refinancing
Another popular refinancing option is the VA Cash-Out Refinance, which allows you to tap into your home’s equity and extract cash. Borrowers aren’t required to have a VA Loan in order to choose this option; many homeowners use the cash-out option to refinance from an FHA or conventional loan.
An option for those with a VA or conventional loan looking to take advantage of their home’s equity to access cash for home improvements, emergencies, pay off debt, or any other purpose.
A Streamline Refinance allows veterans who currently have a VA Loan to refinance into a lower interest rate, reducing monthly mortgage costs. Streamline refinance loans feature little paperwork and often require little-to-no costs out of pocket. Borrowers can roll closing costs into their overall loan amount. Some homeowners can also secure a Streamline refinance without an appraisal.
The other popular option, known as the Cash-Out Refinance, allows borrowers in Miami to tap into their home’s equity and use it as cash. This type of refinancing is available to any qualified veteran homeowner, regardless of whether they have an FHA, USDA or conventional loan.
The current economic climate makes now a great time for many military homeowners to take advantage of the numerous benefits found in a VA refinance.
Qualified homeowners may be able to refinance up to 100 percent of their home’s loan-to-value and use the proceeds for home repairs, remodeling, and other needs.
When to Refinance in Miami
Homeowners considering a VA Loan refinance in Miami should understand that timing is everything when refinancing a mortgage.
In most cases in Miami, 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 soaring.
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.
The VA Home Loan program provides qualified homeowners with a simple way to take advantage of lower rates and decrease their monthly mortgage payment. Beyond that, military homeowners can get cash back on a VA refinance and use the proceeds for a variety of needs, from paying off debt or making home improvements and much more. The current economic climate makes now a great time or many military homeowners to take advantage of the numerous benefits found in a VA refinance.
Two main programs help VA borrowers refinance to a lower rate — the VA Streamline Refinance, also known as the Interest Rate Reduction Refinance Loan (IRRRL), and the VA Cash-Out Refinance.
VA Refinance Eligibility
Eligibility for a VA Refinance is similar to that of a home purchase VA Loan.
Typically, you can qualify if you served on active duty for more than 90 consecutive days during wartime or more than 181 days of service during peacetime.
For National Guard members and Reservists, the veteran must have served at least six years.
Some surviving spouses of veterans who died while in service or from a service-connected disability may also be eligible.
It is important to note that in order to receive a VA Streamline refinance, you must hold an existing VA Loan.