Enough Cash Is Never Enough
Now more that ever many Americans have found themselves a little cash-strapped for many reasons usually related to these financially turbulent times. Image tuition may be looming as children grow up, a home may need improvement to increase or sustain its value, or it may be time to make a high-ticket purchase. Many have found the cash relief they need by taking a debt consolidation loan. Some people may have been watching home loan interest falling to surprising lows and want to take advantage of them so they can keep more money in their pockets on a month-to-month basis. If your nose is to wind for any of these reasons, it may be time for you to consider your options, to include refinancing your Veterans Administration Home Loan (VA Loan).
VA Loan Interest Rate Reduction Refinancing Loan
The Veterans Administration Home Loan division has identified a deal called the Interest Rate Reduction Refinancing Loan (IRRRL) to provide a way for those veterans and service members to lower their monthly interest rates with no out-of-pocket expenses. These loans do not require the rigamarole of starting a home loan from scratch and they are executed in a lot speedier fashion than a typical loan or refinancing application. This refinancing allows the borrower to get the lower interest rates available today rather than the high rates charged prior to the recession. One stipulation: this program is available only to those veterans and service members who are redoing their ORIGINAL VA Home Loan and who are using their original eligibility to get a lower rate with a different lender.
No Out-of-Pocket Expenses
When investigating the IRRRL for a VA Home Loan you will find the terms No Cost and Streamline. Basically, this means that you will not have to cash to do the deed and that the process can be completed rather quickly. Refinancing always incurs extra fees and other costs. These can simply be added to the loan or the lender may be asked to cover those costs, but usually at the expense of a little higher interest rate. Still, the rates will be lower. To get the absolute lowest rate that you can get, you can get the market rate or actually buy down you rate and roll all the closing costs into the refinancing.
Use a VA Home Refinancing to Pull Out Home Equity
You may be overwhelmed with debt – a bunch of pesky little debts that have grown unmanageable. These debts will often include too much high-interest credit card debt. Debt consolidation can roll all those debts into one so that you have manageable payments less than the aggregate payment of all those loans, with an interest rate lower than all those loans, and all due at one time to one creditor. That right there makes restful nights possible. Of course, as mentioned, you may need the refinancing for school, home improvement or some other pressing need. What happens is the VA refinance transaction will pay off the current VA Home Loan with your new VA Home Loan and any cash left over can go into your budget for the appropriate application. This is typically called a Cash Out refinancing.
VA Home Loan Stipulations
Cash Out refinancing must be used only for homes that are a principal residence of the loan holder. This VA Home Loan refinancing can go for up to 100% of the appraised value including all closing costs and other fees. No minimum time of occupation is required, though your home must have sufficient equity left according to an appraisal done by a qualified VA Home Loan appraiser.