| After having carefully planned and researched, you | | | | words, don't just refinance your home, develop a plan |
| finally close on a VA home loan thinking that this is the | | | | that betters your financial well being and stick to it. |
| end of all the troubles. As the years pass, so do your | | | | How much cash can I receive? |
| family dynamics. Maybe your family has grown in | | | | Once you get your house appraisal done, you have |
| numbers and it's time to add the extra bedroom, or | | | | the option to cash out up to 90% of the total amount |
| maybe it's just a matter of consolidating debt to take | | | | of accrued equity in your home. |
| advantage of the tax benefits. Statistics show that the | | | | Don't confuse a VA cash out refinance with a VA |
| average mortgage loan is kept no longer than five | | | | streamline refinance (or VA IRRL) |
| years. And, most Americans move within ten years of | | | | One of the common mistakes people make is confuse |
| buying their first home. | | | | the Cash-Out Refinance program with the streamline |
| Like it or not, you'll probably be refinancing; and if your | | | | refinance program. These two are completely |
| considering taking cash out, then this article is for you! | | | | different programs. |
| What is a VA cash out mortgage refinance? | | | | Here are the primary differences: |
| In the simplest of words, this is a program that | | | | VA Cash Out Refinance:o 3% funding fee unless |
| provides you with the option of cashing out the equity | | | | exempto Appraisal is requiredo No reported late |
| that has accrued on your home during your period of | | | | payments for the past 12 months |
| stay. You can use the funds as per your requirements | | | | VA IRRL or VA Streamline Refinance:o .5% funding |
| and choosing. | | | | fee (can sometimes be waived)o No appraisal |
| Before considering a VA cash out refinance, we | | | | required* (*NOTE: with banks changing guidelines daily, |
| recommend speaking to a certified mortgage planner | | | | some DO require an appraisal.)o Can have 1 late |
| and VA loan specialist. These people can offer you | | | | payment reported over the last 12 months.* (*NOTE: |
| expert advice and also ensure your decision meets | | | | As per the banks discretion. In some cases, banks will |
| both your short and long term objectives. In other | | | | not accept late payments. |