VA Cash Out Refinance

VA Cash Out Refinance

posted in: Mortgages, News

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With rates at all-time lows and loan limits on the way up, now would be the best time for a veteran who needs to upgrade his or her home, pay off high-interest credit card debts, or just pull money and put it into savings for a rainy day.  There is no loan limit with VA loans. Because of this, there is no need to obtain a second position home equity loan or a home equity line of credit. There are three very good reasons to take advantage of the opportunity to refinance NOW.

  • A lower rate will reduce your payment and if you pull out enough equity, pay off high-interest rate credit card debts.
  • Getting out of an adjustable-rate mortgage into a fixed-rate loan will give you peace of mind since your payment will remain stable.
  • Eliminate expensive mortgage insurance.

The maximum loan to value that 7th Level Mortgage typically allows is no more than 90%, however, there are circumstances where a higher loan to value may be needed to cover some of the closing costs. Your loan officer will have the details on how this is accomplished. VA loans can be structured such that there will be no out-of-pocket closing costs. There is a one-time VA funding fee. This fee can vary from 2.3% to 3.6%. The fee is what is charged to keep the program running. If you have a conforming or FHA loan and you are paying mortgage insurance, using your DD214 showing you are completely eligible for the loan, you will be eliminating a fee that you need not continue to pay.

With a VA cash-out refinance, you will be taking reeking the benefits of refinancing a higher rate mortgage and getting cash back. By way of example:

  1. Mortgage Balance: $150,000
  2. Cash Back: $75,000
  3. Property Value: $250,000 (New LTV 90%)

Would that $75,000 in cash help secure your future, pay for your children’s higher education, pay off high-interest credit card debts or allow you to upgrade your home? If the answer is, “Yes” to any of the scenarios I just laid out, then you will want to call 7th Level Mortgage and speak to one of the professional loan officers about structuring a brand new loan for you.

There are some things that you should think about when considering a VA cash-out refinance.

  1. Because rates have been at historic lows and because of the ongoing pandemic, NOW would be the time to make the switch and select a VA cash-out refinance. YOU have given to your country your best, so I ask you, why not use your DD214 and VA eligibility to your best advantage?
  2. Are you on time with your payments including your mortgage, credit card bills, and other recurring monthly debts? If you are, that’s great. Why not take advantage of a lower mortgage rate with a lower payment?
  3. With a non-VA loan and a loan to value that exceeds 80%, you will be paying some form of mortgage insurance. With a VA cash-out refinance, you can eliminate that fee. The guidelines for this benefit are:
    • Veterans with an honorable discharge and adequate military service history
    • Current active duty service members with an adequate service history
    • Current reserve members and members of the National Guard (6 years service is what is required)
    • Unmarried surviving spouses of military veterans
    • Commissioned officers of the Public Health and NOAA also qualify

Closing Costs:

    • Closing costs are the same (except for seller-paid fees during a purchase)
    • Roll in the closing costs makes even more sense because the circumstances in terms of the pandemic and the limited cash people have on hand is limited.
    • The VA funding fee can be rolled in as well.
    • A VA appraisal on the property will be performed, however, this fee can also be rolled into the loan.

Finally, in these uncertain economic times, now would be the best time to obtain a new loan, eliminate debt, finish those upgrades and live a better future. You certainly have earned it. The sacrifices all our veterans have made should be reason enough to obtain this loan and this benefit. Why not call 7th Level Mortgage TODAY?