A Refinance for our rightfully honored Veterans
Have you spent years in the service and are still looking to acquire a refinance for yourself? Don’t worry because VA – IRRRL is the perfect solution. Imagine kicking your feet up after a long mission and finally getting a chance to catch up with family in friends. Make those days of Independence Day and Veteran’s Day so much more worth it in a place you’re proud to call home at a price you can manage. Whether you’re a veteran that’s inactive or active, you deserve the best for the country you defend. Here are some tips to help you out.
What is a VA – IRRRL?
VA – IRRRL also known as Veterans Affairs – Interest Rate Reduction Refinance. First of all by refinancing under VA, your interest rate will drop. By this factor alone, you’ll find a lower monthly mortgage to pay. If you are already in a VA loan, it’s much easier to talk to a lender and process the refinance in about a month. Not to mention, you will certainly save tons of money on a monthly basis. You might want to create a college fund for your kids with those savings.
How Do I Qualify for a VA Loan?
Qualifying for a typical VA loan includes the following factors: a veteran must have served at least 6 months in peacetime, 90 days in war, or 6 years in the Reserves or National Guard. In most cases, active duty members or honorably discharged members are eligible for a VA loan and refinancing. If you have a solid income and credit record, you can actually get a home with no money down. Very attractive for first time homeowners in the service! However, this type of freedom comes with stipulations especially in regards to a VA – IRRRL.
Rules and Regulations of a VA-IRRRL
While you may not have to pay out-of-pocket fees after refinancing and the lender assumes the costs upfront, this easily goes back to you in the form of a higher interest rate. Also, you can only refinance if you have a clean cut mortgage payment record. You may skate by if you’ve only had one late payment in a 30-day period in the past year. This type of refinance is only for lowering mortgage interest rates. Like a typical streamline refinance, you cannot receive cash from this program. Be clear to certify that you’ve previously lived in the property before the refinance process. Since you’ve already acquired a VA Loan before refinancing, you won’t need to go through an appraisal or show a certificate of eligibility. If you end switching from a VA-ARM to a fixed rate loan, chances are your interest rate will increase.
Should I Consult a Lender?
Yes. One of the great things about refinancing this loan is you don’t have to use the original lender, this gives you the opportunity to test the waters to find the best fish in the sea. Use your bait to acquire a lender you think fits best with your situation. Discuss different loan limits of your home and see what options fit best. Certain rates may seem better, but it could affect how much you pay per month on your mortgage. Small changes can mean huge deductions or huge increases in your mortgage payments. For more information on lenders and the application process, go to the US Department of Veteran Affairs website. Remember, the internet is a great resource for your preliminary research.
It’s a great relief when you have lowered your monthly payment. Don’t worry about the stress of taking care of a home when your hard work and diligent service has helped protect the lives of millions! Refinance with a reputable lender to make your home that much more rewarding.