One of the properties that I originally used a VA loan for is approaching 80% LTV. It's about $5k away from that right now. Is there an easy way to figure out if refinancing will give me either a lower payment or possibly pull out some principal to pay for another property?
If I get some cash out, have any of you done a VA refinance before? If so, how did that work for you?
I did the VA streamline in 2011 and it went pretty smooth for me, with the VA IRRL refinance program there wasn't a requirement to be below 80% LTV. I fully refinanced 100% of the purchase price. I bought the house in 2010 and refinanced just under two years later and was underwater on the house at the time. It didn't matter since they didn't require an appraisal. I'm pretty sure that I remember an owner occupancy clause still being a requirement for the refinance. I was still living in the house at the time so it wasn't an issue but you might want to look into that.
Is your goal of refinancing to get back some of your VA entitlement or are you trying to lower your payments to up your cashflow? You should be able to use a mortgage calculator to find out a rough estimate of payments. I like to use bank rate to get rough hacks.
Hope this helps.
@Will McVeigh I just closed on 2 simultaneous VA refinance loans this week. One was an IRRRL (VA streamline) on my current rental property and the other was a cash out refi on my primary residence to pull a down payment for my next investment. You can cash out up to 100% LTV IF it is still your primary residence. With my rental my only option was the IRRRL and I had to sign a statement saying that it was my primary residence in the past. With the IRRRL you can only add 10 years on to the original terms. For example, I had a 15 year loan when it was my primary but wanted to extend my terms to ensure I was cash flow positive so I was only allowed to extend it to 25 years. I also had to pay a point to ensure I lowered my interest rate but in the end I went from a 15 year (about 10 left) 3.5% out to 25 year 3.375% bringing my PITI from $1510 to $990.
My goal is to reduce payment costs on one of the rentals. The taxes where the rental is located went up by $50 / month. I'll look into the IRRRL that might be able to work for me. Thanks for the info!
Check the closing costs. I thought about it to refinance my name off the houses to free of mortgages. That being said it didn't make sense.
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