Did you know that you can refinance a VA loan just like any other mortgage?
You can refinance a VA loan to lower your interest rate, change the length of your loan repayment schedule, or to get cash back.
Interest Rate Reduction
The VA Interest Rate Reduction Refinance Loan lets you lower your interest rate by refinancing an existing VA loan. A reduced interest rate will usually give you a lower monthly payment. You can also change the length of your mortgage, for example from 30 years to 15 years or vice-versa, this could also lower your monthly payment or interest rate.
Cash Out & Refinance
The cash out & refinance option can give you cash based on the value of your house. For example, if your home is worth $200,000 and you owe $100,000 on your VA loan you can get a new VA loan for $200,000 and use the $100,000 remaining to pay off debt, pay for school, or make home improvements. The Cash Out & Refinance option is usually a better choice than a 2nd mortgage or a home equity loan due to the lower interest rate.