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Home 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.

Home refinance with the VA IRRRL

How it works

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.

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 Rates

Lower Monthly Payments

Pay Off Loan Early

Access Equity

Lock in a Fixed Rate

Eliminate Private Mortgage Insurance (PMI)

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.

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

Check your refinance eligibility instantly >

How to Get a VA IRRRL

1
Connect with a VA Specialized Lender
2
Provide Necessary Documentation
3
Close on the Loan!

Benefits of a VA IRRRL

A VA IRRRL has specific characteristics and benefits

No Appraisal

Minimal Income Verification

Minimal to No Credit Score Requirements

Can Close Very Quickly

Little to No Out-of-Pocket Costs

Reusable

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.

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

How to Get a VA Cash-Out Refinance

1
Connect with a VA Specialized Lender
2
Provide Certificate of Eligibility or Work with your lender to obtain your COE
3
Provide any Additional Documentation
4
Close on the Loan!

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%

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!

We offer a variety of resources so you can clearly understand the process

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Helpful Resources

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

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

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

2024 VA Home Loan Guide

VA Guide

This FREE guide is designed to provide you the most important details of the VA Loan in an easy-to-use format. Print it out and read at your leisure.

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