You’ve built a life for you and your family in your home and have started creating lasting memories. But chances are, you could use a little extra cash to make home repairs, consolidate debt, or even take that dream vacation. The great news is that you can free up money with a home loan refinance!
When you refinance your home loan, you take out a new mortgage to replace your original mortgage. This can enable you to lower your interest rates and monthly payments, take out cash for a major purchase, or even switch from an adjustable mortgage to a fixed-rate mortgage. With mortgage rates near an all-time low, now’s a great time to refinance and lock in those lower rates.
If you’re a veteran, you have more money-saving options than the average homeowner. You can replace a conventional, USDA, or FHA loan with a VA loan to take advantage of the current market’s low mortgage rates. By taking out a VA loan, you’ll have access to valuable benefits only available to military personnel, including lower than average rates and refinancing on 100% of your home’s value.
When considering refinancing your home loan, it’s important to understand the different options available:
Regular Refinance Loans
If you currently have a conventional, FHA, or USDA loan, you can refinance your home loan to secure lower interest rates. However, if you’re a veteran, you might want to consider refinancing into a VA loan, which has valuable benefits only available to military veterans.
If you’re a qualified military borrower who has built up a significant amount of equity in your home, you might want to consider a Cash-Out Refinance. Not only can you refinance your conventional or VA loan at a lower rate, but you can also use cash from your home’s equity to make home improvements, pay off debt, save money for your children’s education, or even take that long-awaited honeymoon.
VA Interest Rate Reduction Refinance Loan (IRRRL)
Also known as a VA Streamline Refinance, an IRRRL loan is perfect if you’re a homeowner who already has a VA loan and you want to take advantage of lower interest rates. This type of refinance is relatively straightforward since you already have an existing VA loan. While you can’t take cash out with this type of refinance loan, there are other significant benefits:
- No required appraisal in most cases
- No need to obtain another Certificate of Eligibility (COE)
- Little to no out-of-pocket costs
- Funding fee can be added to the balance of the loan
You’ve put a lot of time and energy into buying a home, so why not take advantage of the benefits of homeownership by refinancing your home loan? Our team at Murfreesboro is ready to talk to you about your options and get you started on your home loan refinance.