Experienced and Responsible VA Home Refinancing
As one of the nation’s top VA mortgage lenders and refinancing specialists, NASB is able to provide a variety of loan programs to suite your needs, including Conventional, VA, and FHA home loans. What does this mean for you? It means NASB can provide the loan programs and resources to help you get the best possible rates and lowest fees on your VA home loan refinance. Regardless of how familiar you are with VA and Streamline refinancing, our friendly, knowledgeable VA mortgage professionals will be there for you every step of the way to make sure you have all the information needed to make the best decision for your family. Please read below for an overview of VA home loan refinancing and the different home loan refinancing options available to you.
Why Do People Refinance a VA Loan?
VA home loan refinancing allows qualified veterans or Active-Duty Military Personnel to replace their existing VA mortgage terms with new mortgage terms that benefit them. There are several reasons why Veterans or Active-Duty military might choose to refinance their home mortgage. The most common benefits in refinancing your VA home loan include reducing your interest rate, lowering your monthly payment, or reducing your loan term so you can pay off your loan more quickly. Refinancing is commonly done to alleviate risk. This especially comes into play when a homeowner has an Adjustable Rate Mortgage (ARM) and wants to refinance to a fixed-rate mortgage that is not subject to potential rate increases, thereby reducing the uncertainty of risk and the future risk of not being able to afford payments when the rate starts to adjust. VA loan refinancing may also free up extra cash that can be used for long term goals such as home improvements, education expenses or more immediate needs that may arise. The extra savings offered by a lower monthly payment is a great reason in and of itself to refinance.
Types of VA Refinancing
NASB offers several VA loan refinance options for refinancing your VA home loan under the federal VA lending program. If you qualify, you may refinance an existing VA loan or refinance from a Conventional loan to a VA loan. Refinancing from a Conventional loan to a VA loan may provide considerable benefits such as reduced monthly payments due to lower interest rate and elimination of monthly mortgage insurance payments regardless of how much equity you have.
VA Cash Out Refinance
A Cash-Out refinance utilizes the equity in your home to help you make needed home improvements, cover education expenses, or pay off other high interest loans or credit cards. The amount of equity (i.e. cash) you are able to borrow is based on the appraised value of the home used to secure the new VA loan balance, along with other factors such as credit score, income, and existing debt. In most scenarios you can receive at least 95% of the home’s value and in some instances receive a loan for 100% of the appraisal value. The benefits of this type of VA home loan refinancing include no out-of-pocket costs and no monthly mortgage insurance payments. In addition, the interest rate and payments on a VA mortgage loan are often lower than a comparable conventional mortgage option.
VA Streamline Loan Refinance (IRRRL)
Veterans and Active-Duty Military Personnel who already have an existing VA home loan are eligible for VA Streamline Refinancing. The Department of Veterans Affairs (VA) implemented this program to help veterans and Active-Duty personnel lower their interest rates and monthly payments with no out-of-pocket costs. The VA Streamline refinance home loan, also known as the Interest Rate Reduction Refinance Loan (IRRRL), is one of the best options on the market. In addition to lowering interest rates and monthly payments, it’s also one of the easier programs to get approved for. With this type of VA home loan there is often no appraisal required or income documentation making this refinance hassle free and streamlined.
Conventional to VA Refinance
If you do not currently have a VA home loan but are now an eligible veteran who qualifies for one, you too may be able to lower your interest rate and save on your mortgage. Refinancing your current mortgage to a lower rate VA home mortgage, will not only lower your monthly payment and free up extra cash, but also eliminate expensive monthly mortgage insurance payments. Furthermore, you may be able to save thousands of dollars in interest premiums by lowering the term of your loan.
VA Home Loan Mortgage Rates
The federal government has dropped interest rates over the last few years to stimulate home buying, and the hope of helping the economy. With these historically low mortgage rates, now is an excellent time to refinance your home loan with NASB. If your current VA home loan mortgage is an Adjustable Rate Mortgage, now is the time to refinance your loan to a permanent, lower fixed rate. If your VA home loan mortgage is already a fixed rate, then refinancing your loan may save you money by lowering your monthly payment and reducing the loan term.
As a strong, reputable nationwide lender, NASB will ensure that you get the best service and the best available rate on a VA home loan refinance. We will provide you with a “Good Faith Estimate,” outlining a firm quote that includes all of our fees and lender controlled costs, as well as an accurate estimate of supplementary loan costs such as title insurance, recording fees, and transfer taxes.
Start taking advantage of your military benefits! You can count on NASB to offer the most competitive rates available. For a more detailed quote or additional information, please contact a NASB mortgage consultant.