Refinancing your home is not always a good idea, but if you can improve your interest rate and lower your monthly payment, now might be the time to do so. When it comes to VA refinance rates, you can be confident that they’ll be lower than conventional interest rates, which means that you can enjoy a lower payment right away.
Atlas Crown Mortgage can help you find the proper VA refinance rate for you. Keep reading to learn more about the benefits of refinancing and if the time is right for you.
Who is eligible for VA refinancing?
In order to be eligible for VA refinance rates, you must meet one or more of the requirements laid out by the Department of Veteran Affairs. These requirements are as follows:
- Served 90 active days of active service during wartime.
- Served 181 days of active service during peacetime.
- Served 6 years in the National Guard or Reserves.
What is VA refinancing?
No matter the type of original mortgage loan you obtained when you bought your home or property, you can refinance your loan if you meet the established requirements. You can refinance from an adjustable or variable interest rate to a fixed rate. Furthermore, refinancing to a VA Interest Rate Reduction Loan from a conventional loan is easy.
While most lenders look for a loan-to-value ratio of 80 or lower, you can enjoy VA refinance rates with a loan-to-value ratio up to 100 percent. This allows you to refinance with lower home equity.
Interest Rate Reduction Refinance Loan (IRRRL)
An IRRRL is often called a “streamline” refinance because it helps to lower your payments with a lower interest rate or make your monthly payment more consistent by moving from a variable interest rate to a fixed rate. As overall interest rates fluctuate, you can take advantage of lowering interest rates and get VA refinance rates that are below those that you originally had.
Get a better loan
If you have improved your credit score since the time you took out your loan, you can qualify for a better interest rate. Your interest rate will likely be lower if you’re making the switch from a traditional mortgage loan to a VA loan.
Take out cash
With a cash-out refinance, you can get a new loan for more than what you currently owe on your home. For example, if you owe $150,000 on your home, you can get a new loan that’s for $175,000 and use the additional funds for home improvements or to satisfy other financial needs. With VA refinance rates, you can take out more money against the equity of your home compared to other loans.
Convert to a fixed rate
While you might have gotten a low interest rate to start with, it can fluctuate and go even higher. This means that when your interest rate goes up, your mortgage payment goes with it. You can get your loan refinanced and converted to a fixed interest rate so that your monthly payment stays the same for the lifetime of your loan.
Get started by contacting a mortgage broker
Reach out to Atlas Crown Mortgage today to find out how our team can help you learn more about VA refinance rates. Our team can help you to weigh your options to find out if refinancing right now is right for you. We’re experts when it comes to restructuring and refinancing your mortgage loan to make your monthly payment more affordable or get you quick cash when you need it. Give us a call at 480-470-8700 or fill out our online contact form. We’ll get back to you in a hurry so you can get started right away.