Apart from offering VA Purchase Loans, the Department of Veteran Affairs also offers refinance options for people who find it hard to pay their mortgage on time. One of the most popular refinance options is the VA Cash Out Refinance Program. The VA Cash Out Refinance Loan allows you to get some money against your existing home equity. If everything is in order, you can get a loan that is equal to 100% of the home equity. Now, you can use a majority of that amount to pay off your existing mortgage, but the remaining amount (if any) could be used for meeting your other expenses. So, if you are finding it hard to make regular payments and you are need for some cash, then getting a VA Cash Out Refinance is the best option for you.
However, before you apply for a VA Cash Out Refinance, you should know about a few facts. In the following post, we are going to take a look at some of the most important facts that you should know to get the most out of your VA Cash Out Refinance Loan.
You can get a Cash Out Loan to Refinance Any Kind of Mortgage
Most people think that since the VA Streamline Refinance Program is a VA to VA Refinance, the Cash Out refinance is also the same. However, it is really not that way. You can use your VA Cash Out Refinance Loan to refinance your FHA Loans or even a conventional mortgage as well.
The Funding Fee for VA Cash Out Refinance
The Funding Fee forms a major part of the VA Cash Out Refinance Closing Costs. The funding fee for a member of regular armed forces is 2.15 percent of the loan amount for first use. For second use, the funding fee is 3.3 percent. If you are a member of the National Guards or the Reserves, you would need to pay a funding fee of 2.4 percent. For second use, you would need to pay a funding fee of 3.3 percent.
Get in touch with a VA approved lender and get the best advice from the true experts. They would help you to determine the amount of mortgage that you would need to pay with the VA Cash Out refinance Calculator. So, get in touch with the leaders and get the best services that help you to get the most.
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