VA Loan Refinancing Solutions for Savings or Cash in Hand

In this week’s blog, we’re diving into VA loan refinance options to save money or turn home equity into cash. Much like conventional loan refinancing, there are both rate-and-term and cash-out VA loan refinancing options. When you work with a qualified lending agent, refinancing doesn’t have to be a difficult process and may cost you nothing out of pocket initially. Read on to learn more about VA loan refinancing and contact Nickel City Funding for a free quote if you live in North Tonawanda, Hamburg, Amherst, West Seneca, Lancaster, or surrounding New York.

Refinancing to a Lower Rate

The VA Interest Rate Reduction Refinance Loan, commonly known as VA IRRRL or VA Streamline Refinance, is a VA-sponsored, minimal hassle refinance option. VA IRRRLs have minimal paperwork and minimal or no out-of-pocket costs. They’re designed to save you money with a lower interest rate and/or preferable term.

VA IRRRL loans have several benefits:

  • A new appraisal and credit check are not required for approval. You also are not required to obtain a new certificate of eligibility (COE).
  • Closing costs and the VA funding fee can be rolled in to your loan, which allows for no upfront refinancing costs.
  • A VA IRRRL must save you money over time. In some cases, this may mean a higher interest rate at first if you are switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.

It’s important to note that you cannot receive any cash payout from a VA IRRRL. If you’re in need of cash in exchange for part of your home equity, you should consider a VA cash-out refinance instead.

Refinancing for Cash in Hand

A VA cash-out refinance provides qualified veterans the opportunity to extract cash from their home equity in exchange for higher-value loan. In many cases, VA cash-out refinance also have lower interest rates, as well.

VA cash-out refinance benefits include:

  • Borrowers have the option to refinance up to 100% of a home’s value.
  • Cash-out refinance has minimal funding fees, which may be incorporated into the loan if a borrower chooses.
  • The cash raised in exchange for equity may be used to pay off other high-interest debts or other expenses and save the client money over time.
  • Cash-out refinancing can also result in a lower interest rate to save long-term.

Because these loans do increase the debt that you owe, it’s important that you think carefully about if cash-out refinancing or another loan option is best for you. If you’re simply looking for a better rate, or a longer or shorter term, a VA IRRRL may suit you better.

Refinancing Can Be Stress Free

When you’re ready to look further into VA IRRRL or VA cash-out refinancing, the mortgage pros at Nickel City Funding are here to answer your questions. VA loan refinancing doesn’t have to be a stressful or drawn-out process, and it could help you save over time or get much-needed cash in hand now. If you live in North Tonawanda, Hamburg, Amherst, West Seneca, or Lancaster, contact us for a free quote today.