Overall refinance activity has progressively slowed as many borrowers have already taken advantage of historically low rates. However, many borrowers can still save money monthly by consolidating their high interest student loan or credit card debt into a lower interest mortgage.
Refinancing your home with a VA loan could significantly decrease your monthly payments. Plus, VA loans have a government guarantee and no prepayment penalty.
Military Direct offers two great options for VA mortgage refinancing both with low closing costs, no monthly mortgage insurance, and 100% financing.
VA Streamline IRRL Refinance
A streamline refinance allows veterans who currently have a VA Loan to refinance into a lower interest rate, reducing monthly mortgage costs. Streamline refinance loans require minimum paperwork and little-to-no out of pocket costs. VA borrowers can roll some of the closing costs into the total loan amount. Additionally, homeowners can obtain this type of refinance without an appraisal, which is a big cost saving benefit.
This option allows borrowers to tap into their home’s equity and use it as cash. This type of refinance is available to any qualified veteran homeowner, regardless of what type of mortgage they currently have. The VA program permits up to 100% cash out.
So, while the Federal Reserve is predicting that there could be at least two more rate increases before the end of the year, it is important to know that refinancing with the VA Home Loan is still a viable option for homeowners. Contact one of our VA Loan Specialists today with any questions you might have.