SHOULD I REFINANCE MY VA HOME LOAN?

Home loans for veterans under the VA program can be refinanced.

If you have a home loan under the VA program, you can enjoy the lower interest rates that are now available.

Refinancing can be an effective tool to manage your household finances.

WHY REFINANCE?

First, you should always consider the effect of closing costs on your decision to refinance and whether extending your mortgage to a longer period will help you in the long run.

Common reasons individuals refinance are:

Lower interest rates - The lower rate can help you to save money on your loan over the long term.

Consolidating home equity loan debt - If you have a home equity loan, in addition to a mortgage loan, you can combine the two into a single, lower payment.

Paying off credit card debt - You can cash out equity in your home to pay off credit cards and lower your monthly household expenses.

Get cash for other needs - You may wish to invest in some income property that can help your overall financial goals.

Perhaps, a family emergency requires some cash. A refinance loan can help provide money for these needs.

INTEREST RATE REDUCTION REFINANCE LOAN

The Interest Rate Reduction Refinance Loan provides an easy way to refinance for those who hold a VA guaranteed loan on their homes.

However, requirements for eligibility are slightly different for the IRRRL program:

The Certificate of Eligibility that is required when first applying for a VA loan is not required for refinancing under the IRRRL program.

Only the first mortgage on your loan can be covered under the program. The holders of a second mortgage must agree to subordinate their loan so that the refinance can be the first mortgage.

Occupancy requirements for the property are different under the IRRL program. You must have occupied the property in the past, but do not have to occupy it in the future.

IMPORTANT FACTS TO REMEMBER ABOUT THEIRRRL PROGRAM

Homeowners who have a VA loan and wish to refinance should be aware of a number of facts about the IRRRL program:

No appraisal of the home is required.

No credit underwriting is required.

You cannot take cash out from your equity under this program. When converting from a VA ARM loan to a fixed-rate loan, the interest may be higher.

The homeowner may roll the costs of refinancing into the new loan. Interest rates may vary from lender to lender.

Those interested in the program should contact several lenders to compare interest rates.

Not all lenders offer the IRRRL program. However. Any lender that provides VA home loans is eligible to provide refinancing under IRRL.

PURCHASE AND CASH-OUT REFINANCE LOAN

Homeowners who wish to take money out of the equity in their homes must use the Purchase and Cash-Out Refinance Loan Program to do so.

If this is your first VA guaranteed loan, you will have to provide a Certificate of Eligibility indicating your dates of service.

Some lenders may not permit cash-out of equity for refinancing these loans. Lenders who do permit cash-out from equity may allow up to 100 percent of the home's value.

The cash-out program can be used to combine a first and second mortgage under one loan.

Jimmy Vercellino is a VA Loan Specialist who helps veterans obtain the loans they are entitled to.

He served in the United States Marine Corps, and now devotes himself to the Veteran home buyer in the Phoenix area, fulfilling a passion of his while at the same time helping others achieve home ownership.

Be a proud homeowner today.

For more details call 480-351-5904 orvisit the site:

www.valoansforvets.com

Jimmy VercellinoVA Home Loan Specialist7702 E. Doubletree Ranch Road, Suite 220Scottsdale AZ 85258Phone: 480-351-5904