VA Loans: Refinance A VA Loan
For Veterans who are currently in a home that is financed with a VA loan, when interest rates drop they often wonder what their VA loan refinance options are. The VA loan program has two basic options for VA loan refinancing: the VA cash out refinance and the VA streamline refinance.
VA Loan Cash-Out Refinance
The VA loan cash out refinance is popular with Veterans who want to refinance their house and get cash at the time of closing. One of the most popular reasons for getting cash out of the equity in their home for many Veterans is for home improvements or to consolidate other debts they may have.
VA Streamline Refinance
The VA streamline refinance program is the easiest way for a Veteran with a VA loan to refinance their home if they don’t want any cash out and just want to lower their rate. The VA streamline refinance is designed to allow Veterans to reduce their interest rate when rates are lower with the minimum amount of paperwork (which is why it is called the “streamline refinance” program). For borrowers who have an FHA loan, there is also an FHA streamline refinance that has similar guidelines to the VA streamline refinance program.
The VA streamline refinance is officially called the VA IRRRL (Interest Rate Reduction Refinance Loan) but most Veterans just refer to it as the “VA streamline” or “VA streamline refinance” program.
Regardless what type of refinancing program you may be interested in, the VA refinance options are both popular when rates are low. Generally speaking, if you can save even 1% on the interest rate on your VA loan, then it could potentially add up to hundreds of dollars in savings each month and thousands of dollars each year depending on how big your loan amount is.
If you are interested in learning more about the VA refinance options, be sure to contact a lender who is an approved VA lender to help Veterans with their VA loans either when buying a home or refinancing their home — the VA approved loan officer will be able to answer every question about the VA refinance programs.