How do you qualify for a VA refinance?

Did you know that you can qualify for a VA refinance even if you have a bad credit rating? The program enables you to refinance either a VA loan or cash on up to 90% of your new purchase price without mortgage insurance. VA refinance rates are usually much lower than traditional mortgage rates. However, the benefit is only applicable to veterans buying new homes. It does not apply to most standard mortgages.

For this reason, getting a VA refinance has greater value if you have been repaying your loan for a long time. It also gives you the opportunity to pay down your existing debts and save more money for other expenses. To take advantage of this option, you must contact the lender directly. They will be glad to discuss your case and look into your options for lowering your monthly payments. In most cases, it will be possible to get a lower interest rate, renewal of your loan term, or both.

The number one benefit of a VA refinance is the ability to lower your monthly mortgage insurance and/or reduce your monthly payment amount by adjusting your interest rate or closing costs. In most cases, borrowers qualify for substantial tax benefits when they avail of this service. In addition, many borrowers qualify for government incentives to offset the cost of refinancing. Thus, these benefits can significantly reduce your out-of-pocket expenses while you deal with high interest debt.

Another good reason to consider getting a VA refinance is because these mortgages were specifically designed to help homeowners deal with tough circumstances. These mortgages were designed with the prime objective of giving homeowners better access to mortgage loans while simultaneously providing better mortgage rates and terms. With today's economic conditions, even some traditional mortgages cannot guarantee that borrowers will be able to take advantage of good mortgage rates. This is why it is important to have access to low interest fixed mortgage rates when you need them.

Many people do not realize that there is an alternative to getting a conventional fixed interest rate. Homeowners who want to lock in at a low interest rate but have other financial obligations that are also tying down their income can consider getting an adjustable interest rate (AAIP). While it is true that a traditional fixed mortgage rate cannot adjust, an AIP has the potential to do so if you qualify. If you decide to take advantage of an adjustable mortgage rate change, your lender will report the difference as an amortization adjustment on your income tax return.

VA refinance loans provide homeowners with an opportunity to take advantage of low interest rates and to lock in a lower monthly mortgage insurance premium. There are many advantages to these loans, but they must be used in the right circumstance. For homeowners who qualify, these loans can be a great way to consolidate debt and lower interest rates. The right choice of lender can make this process simple and easy to navigate.