VA Home Loan Refinance Options Explained

There are a number of options available to veterans for refinancing their homes. Refinancing can help you to lower payments, consolidate your debts, make improvements on your home, or even help you pay it off more quickly. Whatever your motivation, there are VA refinance options that will fit your needs. These options include the following:

VA Streamline Refinance Loan: this is the easiest and fastest way to reduce your interest rate, reduce your payment, and/or reduce the length of your loan. Also known as an interest rate reduction loan or IRRRL, this is the best mortgage refinance loan on the market. Credit qualifying is not required, which means that even with bad credit, you may still be eligible for a loan.

VA Debt Consolidation Loan: In order to lower your monthly payments from credit cards, second mortgages, auto loans, or other debts, you can borrow up to 100 percent of your home’s value. You must have some type of equity in your home to qualify for this type of loan.

VA Refinance Relief: This loan can help veterans who have non-VA, “sub-prime,” or conventional loans with higher interest rates or other unfavorable terms. It is provided by the Veteran’s Benefits Improvement Acts of 2008, and is available to help those who are “upside down” on their loans with little or no equity in their homes.

VA Home Improvement Loan: If you would like to make home improvements and increase the value of your home, you can use your home’s current equity. You can borrow up to 90 percent of your home’s equity.

VA Energy Efficiency Mortgage: If you are making energy-efficient upgrades to your home, you can get up to $6,000 added to your refinance loan. These loans allow you to qualify for a larger loan amount and purchase a better, more energy-efficient home. You would have to have your home rated before financing is approved.

VA Cash Out Refinance Loan: This loan can be used to pay off bills, lower monthly payments (not just mortgage payments), or build up a cash reserve. Veterans with equity in their homes are eligible for this loan, and the cash can be used for any purpose. An appraisal is required and you must qualify for the loan (unlike the VA streamline refinance loan). Also a 3 percent funding fee is charged for this loan, but it can be rolled into the loan.

Eric Kandell has helped thousands of U.S. Veterans get approved for VA loans and VA home loan refinances. Hopefully the article above provides you some insights that help you take advantage of the Veteran Benefits you are entitled to because of your service in the United States Military.

How to Make Bad Credit Home Loan Refinance Easier, Like Good Credit Refinance

Today, with the financial crisis is prevailing worldwide, the need for loans or refinances is expected. For those who have good credit, it is not at all a problem for these options, but does that apply to people with bad credit? The answer is yes, it is possible!

If you think there is any error in this statement, then you are absolutely wrong. With the help of useful information and some crucial tips, bad credit home loan refinance can be easily obtained just like good credit home loan refinance.

To begin with, it is important to know what is considered as the most important factor while considering this loan option and the answer to this is credit ratings. A good credit score helps a lot in enabling a person with bad credit get home loan refinances.

In case the credit score is not good, the person must try to repair it. The advantage of repairing bad credit scores is that it not only helps a person getting refinances easily, but even helps in making the loans available at lower interest rates. Thus the benefits are double for the borrower.

Now if you are worried as to how to repair credit repairs, then too you need not to worry at all. It is so because by carefully analysing the credit reports, one can easily get an idea of the real status of his reports. He thereafter can look out for the errors or mistakes and can get them rectified. Thus by this way the scores can be made good to a good extent.

Additionally, there are various agencies available as well that can help a borrower improve his credit ratings. After improving the credit ratings, another important tip for a borrower is to find out the leading providers for home loan refinance with bad credit. Here, a rational approach is required to find out the right provider with better interest rates and other things.

Mortgage Refinancing For Undertaking Home Improvements!

With a Cash out refinance home loan you can refinance your current mortgage for a higher loan amount than your outstanding debt and thus obtain extra cash for whatever purpose you desire.
You can easily use the money to make home improvements and thus, you would be using as collateral for the loan the very same property that you’re going to improve.

Cash Out Refinance Mortgages

Cash out refinance home loans are just like regular refinance home loans, only that you actually refinance for a higher loan amount than your outstanding mortgage making use of the equity you’ve built on your home. Thus, you get a fair extra amount to use for whatever purpose you can think of.

For example: Let’s say you own a property worth $100,000 and you still have to pay a mortgage loan of $60,000. This implies that there is $40,000 worth of property that can be used as collateral. Though some lenders are willing to finance up to 100% of the property or even more, most of them will only lend up to 85%. Thus, in a common scenario you can request a refinance mortgage loan of $85,000, use $60,000 to repay the previous loan and keep $25,000 for other purposes.

Home Improvement Loans

When these loans are used for home improvements, they are actually raising the value of the property that is used as collateral for the loan. Thus, the lender is benefiting from the fact that the asset guaranteeing his money is more valuable and thus, the risk involved in the transaction lowers.

Some lenders will consider loans used for home improvements to be of a lower risk and thus will offer you special loan conditions, including lower interest rates, longer repayment programs and thus lower monthly payments. All this benefits can be easily obtained by just requesting a loan specially tailored for home improvements.

Interest Rate

Usually the interest rate charged for these loans is a bit higher than a regular home loan. But this is true only under the same credit circumstances. If your credit score has improved since you requested your current home loan, chances are that you might get a lower interest rate and general better loan conditions by refinancing your home loan.

Thus, consider checking your credit report prior to applying to know where you stand and what you can expect by refinancing your current mortgage with a cash out refinance home loan. Also check that there are no prepayment penalty clauses in your previous home loan since this can increase the costs turning refinancing more onerous than you thought.

Kate Ross is a professional consultant at Speedybadcreditloans with fifteen years in the financial field. She helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and prevents consumers from falling into financial scams. Also, you can click here to read more useful articles on this and other financial issues.