Many homeowners might be thinking about how to take advantage of today’s low interest rates without having to rebuy a home.
Given today’s rates, opportunity is within reach. Homeowners can enjoy lower interest paid over the life of the new loan and the benefits of a lump sum of cash.
With the Department of Veterans Affairs cash-out refinance, homeowners can convert their home equity into cash.
Eligible veterans, active duty servicemembers, Reserves, National Guard and surviving spouses can qualify for a loan for up to 100% of the home’s appraised value.
With the recent trend of increased equity, this handy tool gives veterans access to cash on demand.
Borrowers can use the funding for debt elimination, home improvements or to finance a non-VA loan and assume the benefits of conventional lending.
No matter how the money is used, a VA cash-out refinance empowers homeowners to make the most out of the equity through a life-changing investment.
Because VA loans are backed by the federal government and pose a low risk to the lender, homeowners have access to low-cost financing with favorable terms.
Applying for a VA cash-out refinance is no more involved than the process for a conventional loan. Applicants should feel comfortable to apply once having done research on possible lenders and the borrowing terms they offer.
Eligible applicants do not need to be current VA loan holders to qualify for a VA cash-out refinance. This loan program is compatible with any conventional loan regardless of terms, including 15-year, 30-year, fixed and adjustable rate types.
Veterans must meet some criteria before moving forward with the cash-out refinance loan. The minimum requirements include time of service and other considerations related to discharge circumstances and spousal benefits.
Once homeowners are ready to apply, they need to submit a copy of their Department of Veteran Affairs Certificate Eligibility.
Like with any loan, applicants must also have good credit scores and debt-to-income ratios to reach approval status.
If obtaining cash as part of the refinance loan is not a priority, eligible homeowners can also do a streamline refinance. This allows them to secure a lower interest rate loan only.
The cash-out feature, however, is a powerful way to leverage equity and transform it into cash capable of tackling any financial need that the homeowner faces. The no-hassle process is a unique opportunity for homeowners to take advantage of today’s low rates and their growing equity to put quick money into their pockets on favorable terms.
Contact us today with any questions!
Premier Mortgage Resources, LLC is not affiliated with or an agency of the federal government. By refinancing your existing loan, the total finance charges may be higher over the life of the loan.