Are you a homeowner who has served in the military and purchased your home with a VA loan, and are looking to make lower mortgage payments or receive a better rate? If so, you may be eligible to refinance your current VA loan for a better deal on a new mortgage. There is two main types of VA refinancing; a VA streamline and a VA cash-out refinance. If you are curious about your VA loan refinancing options in the areas of Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, the loan specialists at Foundation Mortgage can help answer your questions and find the VA refinancing option that works best for you. Contact us today for a consultation.
VA Cash-Out Refinance
In a VA cash-out refinance, a veteran borrower can replace an existing loan backed by the U.S. Department for Veterans Affairs for a new loan with better terms, and take cash out of the home’s equity. Many borrowers who are looking to supplement their finances opt for a VA loan and use the cash for a variety of reasons, such as to make home improvements, to pay off other high interest debts, or for any other financial needs. To take advantage of a VA cash-out refinance, borrowers should have adequate equity already built up in the home and the borrower must live in the home as their primary residence. It is also important to note that closing costs will need to be paid when a VA cash-out refinance is completed.
VA Streamline Refinance: IRRRL
A VA streamline refinance, also known as an interest rate reduction refinance loan, (IRRRL), allows borrowers who currently have a VA loan to refinance their current loan to a new mortgage with a lower monthly interest rate and a lower mortgage payment through a quicker, simplified process. In a VA streamline, less paperwork and documentation are required and in certain cases, closing costs can even be included in the refinancing of the loan. Also, unlike the VA cash-out refinance, the home does not need to be the primary residence of the borrower.
VA Refinance Eligibility
If you are interested in refinancing your VA loan, there are certain eligibility requirements to be met. Some of the typical qualifications include:
- You must have served in active military duty for 181 days of service during peacetime, or 90 days during wartime
- You must have served at least six years in the National Guard
- You may be eligible in certain circumstances if you are a surviving spouse of a veteran who passed away while in service
Get Help With a VA Refinance
If you are currently serving in the military or are a veteran looking to refinance your VA loan in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, Foundation Mortgage is here to help. Contact us today to determine the best home refinancing option for your situation.