Understanding How a VA Loan Refinance Works

The best thing that Veterans can obtain from a VA loan refinance is that they are not required to go through a Veterans Affairs Department application. VA loans are simply the greatest advantage that this Country is Veterans have to offer. In this article, I am going to tell you several uses of a VA Loan Refinance. First, we are going to cover the most common use, getting your home appraised to sell your house faster. Second, we are going to cover the most uncommon use which is to get your home free of debt.

If you have one time and only one job and you need to make more money then you should apply for a VA loan refinance so that you can pay off your credit card bills at the end of each month. A streamlined refinance is another one-time use of a VA loan refinance. This will lower your interest rate, eliminate or reduce your payment and it will save you a lot of money. There is a lot of great advantages to applying for a streamlined refinance but there are some disadvantages as well.

First of all most borrowers that receive streamline refinance loans typically pay off their mortgage loans with the cash that is left over. This means that you will not have to continue paying off high-interest rates on your credit cards. It also means that you will be able to have a higher monthly payment because you will not have to pay off your mortgage loans with interest. As mentioned above this is typically the case but you may want to check with your lender to make sure. In general, streamline refinance loans are very popular among homeowners.

If you have an adjustable-rate mortgage but you have been making the regular mortgage payments for a while then you might want to check into a ULR or an Unsecured Liability Loan. A ULR is a zero-down payment loan that allows you to get a lower interest rate than you would from a conventional loan and this, in turn, can allow you to pay off your existing loan sooner. Some lenders will allow you to have up to forty-two months to pay off your mortgage if you choose to go this route.

Other fees that borrowers typically pay when getting a VA loan refinance are a set of PMI premiums and a closing cost. The price that you pay for these premiums is generally determined by the value of your house and is usually set at one percent of the total purchase price. The closing cost usually depends on how much money you owe on your mortgage insurance but you generally do not pay this fee until after you have paid your first mortgage insurance premium.

Before choosing a refinance lender it is important to talk with them about any special circumstances that you have. This includes things like your credit rating. If you have bad credit, you should probably look for a lender that specializes in bad credit mortgages. Otherwise, you will want to talk about your financial situation to see if any of your other options could be better. You can learn more about your mortgage loans, including common problems, from a variety of sources including the web and your local library. For additional information about mortgage loans, check out our resources for Getting Started.


Ivy Skye Marshall: Ivy, a social justice reporter, covers human rights issues, social movements, and stories of community resilience.