Refinance

If you purchased your home at a higher interest rate and would like to save money by lowering your monthly payment, refinancing might be the option for you.

Refinance Overview

Refinance Basics

Refinance Basics

Refinancing a home loan involves replacing an existing mortgage with a new one, typically with more favorable terms.

You might refinance for a lower interest rate, to reduce monthly payments, or to change the loan’s duration. This process can potentially save you money over the life of the loan or provide extra funds for other financial goals.

Additionally, refinancing may allow you to switch from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa. Keep in mind that the decision to refinance should align with your long-term financial strategy and consider the current state of the housing market.

Contents

Benefits

Benefits of a VA Refinance

Refinancing offers a variety of benefits based off your specific situation and end goal. See a few of the potential benefits below.

Lower Interest RatesLower Monthly Payments
Pay Off Loan EarlyAccess Equity
Lock in a Fixed RateEliminate Private Mortgage Insurance (PMI)

VA IRRRL

VA Interest Rate Reduction Refinance Loan (VA IRRRL)

One of the most overlooked benefits of the VA Loan is the ability to refinance using a VA IRRRL.

A VA IRRRL is one of the top refinance options available! Often called a “streamline” refinance for a reason, it offers huge benefits with very simple steps and few downsides.

A VA streamline refinance is best if you already have a VA loan, you’re hoping to get a lower interest rate to save money, and you don’t want to take cash out from your home equity. 

Cash-Out ReFi

VA IRRRL Eligibility

To take advantage of a VA IRRRL, you must meet the following requirements:

  • You already have a VA-backed home loan, and
  • You’re using the IRRRL to refinance your existing VA-backed home loan, and
  • You can certify that you currently live in or used to live in the home covered by the loan

Cash-Out ReFi

How to Get a VA IRRRL
Connect with a VA Specialized Lender
Provide Necessary Documentation
Close on the Loan!

Benefits

Benefits of a VA IRRRL
No AppraisalMinimal Income Verification
Minimal to No Credit Score RequirementsCan Close Very Quickly
Little to No Out-of-Pocket CostsReusable
Questions over a VA IRRRL? Talk with one of our VA Loan specialists!

Cash-Out ReFi

VA Backed Cash-Out Refinance

A VA backed cash-out refinance allows you to replace your current VA loan with a new one under different terms.

Eligible borrowers can use a VA cash-out refinance to access the equity they have in their home. You can use this cash to make improvements on your home, pay off other debts, eliminate school loans, etc.

Cash-Out ReFi

VA Cash-Out Refinance Eligibility

To take advantage of a cash-out refinance, you must meet the following requirements:

  • You qualify for a VA-backed home loan Certificate of Eligibility, and
  • You meet VA’s—and your lender’s—standards for credit, income, and any other requirements, and
  • You’ll live in the home you’re refinancing with the loan

Cash-Out ReFi

How to Get a VA Cash-Out Refinance
Connect with a VA Specialized Lender
Provide Certificate of Eligibility (COE) or work with your lender to obtain your COE
Provide Additional Documentation
Close on the Loan!
Ready to start your VA cash-out refinance? Connect with a VA lender today!

Costs

Refinance Costs

When thinking about refinancing your VA loan, it’s important to keep the closing costs in mind. Your number one goal when analyzing a potential refinance is to make sure the benefits and savings outweigh the overall closing costs. 

Our VA loan specialists can walk with you through your specific closing costs based on your situation. For some refinances, you may be able to roll your closing costs into the loan.

Examples of potential closing costs:
VA Funding Fee
Discount Points
Loan Origination Fees
VA Appraisal
Credit Report
Taxes
Title Insurance
Recording Fees

Loan TypeFirst Use FeeSubsequent Use Fee
VA IRRRL0.5%0.5%
VA Cash-Out Refinance2.15%3.3%
Start Your VA Refinance >

Getting Started

Getting Started on Your VA Refinance

To get started on a VA Refinance you will want to get in touch with a military specialized lender to determine your eligibility. From there, your lender will request documents to help determine the best possible refinance option available to you. Refinances tend to move a little more quickly than home purchases, so after you select the best option, expect a short journey to the closing table!

Start Your VA Loan >

Helpful Resources

A straight-forward guide to the VA Loan. Download and print for a resource on the go.

Home buying is a journey. Use this roadmap to plan your next steps into home ownership.

A mortgage calculator made for active duty military. Compare your BAH rate right alongside your potential mortgage payment.

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