Paying heavy mortgage payments every month is something that can be pretty stressful for some. Even if you have a government backed loan like a VA Loan, paying the mortgage every month can be pretty frustrating. To help veterans out of these situations, the Department of Veteran Affairs (VA) also offers you the chance to refinance your loan. Now, the VA offers two refinancing options – The VA Streamline Refinance and the VA Cash Out Refinance. It is often seen that veterans often get confused about which loan they should take in a particular scenario. In the following post, we are going to take the look at the right refinancing option that you should take in case of a particular scenario. Which Refinance Loan Should You Take, If You Want to Reduce Your Interest – If you want to reduce the interest rate of your mortgage, then the best option for you would be the VA IRRRL, also known as the VA Streamline Refinance. Here you would be refinancing your existing VA Loan with a new loan that has a lower interest rate.
You Want to Get Some Money Out of Your Home Equity – If you are looking to get some cash at hand from your home equity, then the VA Loan Refinancing Option for you would be the VA Cash Out Refinance Loan. You Want to Move From ARM to Fixed Rate Mortgage – If you have an Adjustable Rate Mortgage (ARM) Loan then your mortgage rate would change over time. To protect yourself from such volatility, you can move to Fixed Rate Mortgage. To do that, you would need to apply for a VA IRRRL. You Don’t Reside in the Property – If you want to get a refinance for a property that is not your primary residence, then the only VA Refinancing Option that you have is the VA IRRRL. You can’t get a VA Cash Out Refinance for such a property. You need to get in touch with a VA Loan Expert so that you can look at your options in a better way. So, take the help of the leaders and make the right decision.
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