Why and How to Refinance Your VA Loan

Why​ ​and​ ​How​ ​to​ ​Refinance​ ​Your​ ​VA​ ​Loan Many​ ​people​ ​get​ ​concerned​ ​about​ ​the​ ​potential​ ​expenses​ ​and​ ​time​ ​commitment​ ​involved​ ​with refinancing​ ​their​ ​home​ ​loans.​ ​However,​ ​the​ ​process​ ​of​ ​refinancing​ ​a​ ​VA​ ​loan​ ​is​ ​actually​ ​quite simple,​ ​can​ ​save​ ​significant​ ​amounts​ ​of​ ​money,​ ​and​ ​it​ ​does​ ​not​ ​have​ ​to​ ​take​ ​long.​ ​Refinancing​ ​is repaying​ ​your​ ​current​ ​loan​ ​through​ ​a​ ​different​ ​loan.​ ​You​ ​will​ ​choose​ ​the​ ​new​ ​loan,​ ​so​ ​you​ ​can decide​ ​based​ ​on​ ​these​ ​factors​ ​to​ ​pick​ ​the​ ​best​ ​new​ ​loan​ ​for​ ​your​ ​needs: Look​ ​for​ ​a​ ​loan​ ​with​ ​a​ ​better​ ​interest​ ​rate.

Find​ ​term​ ​lengths​ ​that​ ​are​ ​more​ ​fitting​ ​for​ ​you.

Search​ ​for​ ​a​ ​loan​ ​with​ ​the​ ​repayment​ ​plan​ ​that​ ​works​ ​best​ ​for​ ​you.

Investigate​ ​different​ ​types​ ​of​ ​loans​ ​(such​ ​as​ ​fixed-rate​ ​and​ ​adjustable-rate​ ​mortgages),​ ​since you​ ​are​ ​not​ ​required​ ​to​ ​stick​ ​with​ ​the​ ​same​ ​type​ ​of​ ​plan​ ​you​ ​currently​ ​have.

Reasons​ ​for​ ​Refinancing​ ​Your​ ​Home​ ​Loan The​ ​above​ ​list​ ​of​ ​factors​ ​to​ ​consider​ ​when​ ​looking​ ​for​ ​a​ ​new​ ​loan​ ​all​ ​carry​ ​some​ ​of​ ​the​ ​good reasons​ ​to​ ​consider​ ​refinancing.​ ​Certainly,​ ​if​ ​you​ ​can​ ​find​ ​a​ ​loan​ ​with​ ​lower​ ​interest​ ​rates​ ​and​ ​an opportunity​ ​to​ ​either​ ​speed​ ​up​ ​or​ ​slow​ ​down​ ​the​ ​process​ ​of​ ​payment​ ​(dependent​ ​on​ ​which​ ​works better​ ​for​ ​you),​ ​it​ ​is​ ​worth​ ​considering​ ​refinancing.

How​ ​to​ ​Refinance​ ​Your​ ​Home​ ​Loan First,​ ​recognize​ ​your​ ​specific​ ​reason​ ​or​ ​reasons​ ​for​ ​wanting​ ​to​ ​refinance.​ ​The​ ​factors​ ​we​ ​have already​ ​looked​ ​at​ ​concerning​ ​the​ ​reasons​ ​to​ ​refinance​ ​can​ ​be​ ​your​ ​guide​ ​to​ ​identify​ ​personal home​ ​and​ ​financial​ ​needs​ ​that​ ​you​ ​want​ ​to​ ​address​ ​through​ ​the​ ​new​ ​loan.​ ​Once​ ​you​ ​are​ ​set​ ​on the​ ​reason​ ​or​ ​reasons​ ​for​ ​refinancing,​ ​you​ ​will​ ​be​ ​able​ ​to​ ​identify​ ​loans​ ​that​ ​will​ ​work​ ​well​ ​to meet​ ​those​ ​needs​ ​and​ ​goals.

If​ ​your​ ​primary​ ​goal​ ​is​ ​to​ ​lower​ ​your​ ​monthly​ ​payments,​ ​then​ ​the​ ​VA​ ​Streamline​ ​Refinance​ ​IRRL makes​ ​good​ ​sense.​ ​Your​ ​new​ ​loan​ ​will​ ​have​ ​lower​ ​rates​ ​and​ ​shorter​ ​terms.​ ​If​ ​you​ ​plan​ ​to​ ​stay​ ​in your​ ​current​ ​home​ ​for​ ​another​ ​five​ ​years,​ ​you​ ​will​ ​be​ ​able​ ​to​ ​benefit​ ​greatly​ ​from​ ​reduced payments​ ​offered​ ​from​ ​such​ ​a​ ​loan.

If​ ​you​ ​have​ ​equity​ ​already,​ ​then​ ​the​ ​Cash​ ​Out​ ​option​ ​may​ ​work​ ​very​ ​well​ ​for​ ​you.​ ​Refinancing with​ ​this​ ​type​ ​of​ ​a​ ​loan​ ​can​ ​pave​ ​the​ ​way​ ​for​ ​even​ ​greater​ ​equity.​ ​They​ ​allow​ ​you​ ​to​ ​use​ ​the equity​ ​accumulated​ ​for: Home​ ​repairs Home​ ​additions Home​ ​improvements Debt​ ​consolodation Education​ ​for​ ​your​ ​children

If​ ​you​ ​are​ ​looking​ ​for​ ​greater​ ​stability​ ​in​ ​your​ ​monthly​ ​payments,​ ​a​ ​30-Year​ ​fixed​ ​rate​ ​refinancing plan​ ​may​ ​be​ ​a​ ​good​ ​new​ ​loan​ ​to​ ​choose.​ ​The​ ​rates​ ​you​ ​pay​ ​monthly​ ​will​ ​not​ ​change,​ ​and​ ​you will​ ​be​ ​able​ ​to​ ​access​ ​some​ ​of​ ​the​ ​best​ ​tax​ ​advantages​ ​available​ ​with​ ​this​ ​type​ ​of​ ​loan.​ ​As​ ​the name​ ​implies,​ ​it​ ​is​ ​a​ ​long-term​ ​program,​ ​so​ ​you​ ​will​ ​only​ ​want​ ​to​ ​choose​ ​this​ ​type​ ​of​ ​loan​ ​if​ ​you are​ ​relatively​ ​confident​ ​that​ ​you​ ​will​ ​remain​ ​in​ ​the​ ​same​ ​home​ ​for​ ​at​ ​least​ ​ten​ ​years.

Conclusion Having​ ​outlined​ ​the​ ​simple​ ​process​ ​of​ ​refinancing,​ ​the​ ​reasons​ ​to​ ​consider​ ​it,​ ​and​ ​the​ ​potential plans​ ​that​ ​may​ ​work​ ​for​ ​you,​ ​we​ ​hope​ ​that​ ​you​ ​will​ ​feel​ ​more​ ​informed​ ​as​ ​you​ ​decide​ ​whether​ ​to refinance​ ​your​ ​VA​ ​loan.