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Looking to get some cash by refinancing your VA home loan? A cash out refinance might be exactly what you're in search of. Not only can you take cash out from the equity in your home, you can also lock down a better interest rate.
No. A home equity loan is a second loan on your property. With a cash out refinance, you still only have one loan to pay back. The new loan completely replaces your existing one.
On top of only having one loan, a homeowner doesn't even need to take money out on his own home. You can simply use the cash out refinance to get a lower rate, or to get yourself into a VA loan and remove the PMI (Private Mortgage Insurance) conventional loans require since your new VA loan will be backed by the government.
Cash out refinancing is typically a longer process than streamline refinancing, which does not require a credit check, bank authorization or income verification. However, with a VA streamline refinance, you cannot take out based on equity. Streamline refinancing is designed for veterans and active service members who simply want a better rate and monthly payment on their VA home loan.
If you were unhappy with your purchase lender, the good news is, you don't have to stick with them if you refinance. As is the case with a VA loan for a purchase, the smartest thing you can do is to shop multiple lenders and compare rates and service. We match you with up to five lenders who compete for your business, allowing you to find the right fit, and right rate.
Learn more about this VA Home Loan Benefit to refinance your existing loan, and get cash to pay off high-interest debt, remodel your house and pay for other large expenses. With a cash out refinance you’ll have one loan and potentially improve your interest rate.
The VA offers home loan programs to help veterans buy, build or renovate a home or refinance your current home loan. Here are some tips to help you through the VA Loan process.
For service members and veterans who qualify, a VA home loan is one of their most valuable benefits and a no-brainer over other, traditional mortgage types. If you qualify, you can buy or build a home, or refinance an existing home mortgage. This section offers information on the VA loan process.