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The office of Veteran Affairs has ensured that veterans seeking to purchase homes and those looking to refinance their VA loans have great options. With mortgage rates at record lows, and continually dropping, now may be a great time to explore VA refinance rates and learn about the refinance process.
Keep reading to learn what you need to know about making VA refinance rates work for your household.
Are you ready to apply for a loan? Give us a call at 800-211-4940 or click here to start the VA loan process!
VA Refinance Rates
Refinance rates for VA loans offer slightly better options than traditional home refinance rates.
The VA IRRRL program – the Interest Rate Reduction Refinance Loan – actually offers one of the best home refinance rates available on the market today. A VA IRRRL program is often called a streamline refinance, and can only be used to refinance a VA loan to another VA loan.
If you have a traditional home loan and are looking to refinance a VA loan, VA streamline refinance rates may not apply to your refinancing goals. You should be sure that your VA loan refinance or home loan consultant explains all the details and rules.
If a VA Streamline Refinance option isn’t the best low refinance option for you, veterans also have the VA Cash Out Refinance program available. We’ll explore both low refinance options at the end of this article.
What This Means For You
A VA mortgage refinance offers homeowners lower home loan interest rates, which can potentially save homeowners hundreds of dollars each month on their monthly mortgage payments. Of course the potential for monthly payment savings will be influenced by your VA refinance mortgage rates, credit scores, and home appraisals to name a few variables.
A qualified VA mortgage lender will be able to examine your unique situation, discover options available to you, and help you find the right VA refinance rates and low refinance option for you.
Waiting for Low Refinance Rates
With the current housing market slump and the federal government’s focus to rebuild the economy and boost the mortgage industry, home refinance rates are in constant fluctuation.
VA loan homeowners may find themselves in a constant holding pattern as they wait for VA refinance mortgage rates to bottom out. While it’s understandable that every homeowner wants to secure the best low refinance rate available, waiting for the mortgage industry can be a gamble.
If you’re waiting for the lowest VA refinance mortgage rates before filing your paperwork, consider that as the market fluctuates so do home appraisals.
When the housing market crashed, so did home values. As home values fell, many homeowners found themselves in a different place with their mortgage as the amount of money paid into a loan turned out to be for a home of much less value.
On the other hand, if you have owned your home for a number of years and have added significant home improvements your home may appraise for more than the current market value it’s assigned.
Playing the low refinance rate waiting game is tough and can be stressful, especially if your situation is one that would benefit from reduced monthly mortgage payments.
Although it’s recommended that you speak with a mortgage and refinance specialist, a good rule of thumb says that if your current home loan rate is higher than 5%, you may benefit from VA streamline refinance rates as they stand today. Even a 1% reduction in rates can save VA loan holders up to $600 per month.
Many streamline refinance lenders and refinancers will offer a free quote, which you can use to determine if today’s VA refinance mortgage rates are the right rates for you.
A word of caution: some lenders can prey upon VA loans holders, so make sure that the lending company you’re talking with has your best interests in mind and can be trusted to not impose unnecessary fees and add stress to your refinance.
Cash In on VA Loan Refinancing Rates
As we mentioned earlier, veterans have two options for refinancing their VA home loan: the VA IRRRL option, and the VA Cash Out Refinance option.
VA IRRRL Option
VA Streamline refinance rates are a preferred low refinance option for VA loan holders. The Streamline option allows for refinancing to be completed quickly and usually without any out-of-pocket costs to the homeowner.
Many times the process can be completed without income verification – this valuable benefit of the VA refinance option may be particularly appealing to some veterans.
Alongside offering these appealing benefits, the VA Streamline refinance rates are also for money-saving for veterans looking to lower the interest rate of a current home loan.
However, with the IRRRL option, homeowners are unable to walk away with any cash leftover from the refinance. Often with a refinance, homeowners use the extra cash to pay for home improvements, pay for college tuitions, eliminate debt, or make those fun luxury purchases.
Even considering this, VA streamline refinance rates are among some of the most appealing low refinance rates on the market. Sometimes, the IRRRL loan will allow for refinancing home improvements, known as an Energy Efficient Mortgage – if this is an interest of yours, speak with a qualified VA loan and refinancing specialist.
VA Cash Out Refinance Program
The VA Cash Out Refinance option is a special program. Veterans who qualify for this low refinance option can cash out up to 90% of the equity they have in their homes while capitalizing on very low refinance rates.
Because you can use the cash you’ve received from a VA Cash Out Refinance, many veterans choose to pay off credit card debt, make home improvements, or simply boost the bottom line of their bank accounts.
No matter which option you choose for lower VA loan refinance rates, veterans will need to consider that credit requirements, income requirements, and service requirements will all be evaluated by the lender structuring the loan.
Although there are no minimum credit score guidelines required by the VA to secure VA refinance mortgage rates, many lenders require a healthy credit score in order to qualify for the best VA refinance mortgage rates or even a loan at all.
Contact Us Today
If you are interested in exploring VA loan refinance rates for the purpose of refinancing your home loan while the market is offering great low rates, get in touch a qualified lender to learn about options available to you.
You can learn more about VA refinance rates by giving us a call at 800-211-4940 or filling out our online contact form. We’d be glad to answer any questions you may have and walk you through the loan process.
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