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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: â– Look for a loan with a better interest rate.
â– Find term lengths that are more fitting for you. â– Search for a loan with the repayment plan that works best for you.
â– Investigate different types of loans (such as fixed-rate and adjustablerate mortgages), since you are not required to stick with the same type of plan you currently have. â– 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: â– Home repairs â– Home additions
■ Debt consolidation ■ Education for your children ■ Home improvements
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 10 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.
Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.
Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com
VA Loans for Vets 7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258 Phone: (480) 351-5904 Email: jimmyv@fcbmtg.com