Greetings, dear reader! If you’re a veteran or an active-duty service member and looking to refinance your VA loan, you’ve come to the right place. Refinancing can be a great way to save money on your monthly mortgage payments, especially when the interest rates are low. However, it’s essential to understand the current VA loan refinance rates before making any decisions.
What is VA Loan Refinancing?
VA Loan refinancing means replacing your existing VA loan with a new one that has better terms and interest rates. You can refinance to lower your monthly payments, shorten your loan term, or convert your existing adjustable-rate mortgage (ARM) to a more stable fixed-rate mortgage (FRM).
One of the best advantages of VA loan refinancing is that you don’t need to provide proof of income or undergo a credit check. The VA streamline refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), is an excellent way to take advantage of lower interest rates and reduce your monthly mortgage payments without much hassle.
Current VA Loan Refinance Rates in 2021
The current VA loan refinance rates depend on various factors such as your credit score, loan term, loan amount, and type of refinance. As of August 2021, the VA refinance rates are:
Type of Refinancing |
Interest Rate |
APR |
|---|---|---|
Cash-out Refinance |
2.875% |
2.875% |
VA IRRRL |
2.375% |
2.375% |
VA Hybrid ARM |
2.625% |
3.395% |
Note that these rates are subject to change depending on the market conditions and the lender’s policies.
FAQs About VA Loan Refinance Rates
1. Can I refinance my VA loan multiple times?
Yes, you can refinance your VA loan multiple times.
2. Can I get cash-out refinancing with VA loans?
Yes, you can get cash-out refinancing with VA loans, provided you have sufficient home equity.
3. What is the VA streamline refinance program?
The VA streamline refinance program is also known as Interest Rate Reduction Refinance Loan (IRRRL). It’s a simplified refinance program that allows you to refinance your existing VA loan to lower your monthly payment or switch from an ARM to an FRM.
4. Can I finance my closing costs in a VA refinance?
Yes, you can finance your closing costs in a VA refinance, but it will increase your overall loan amount.
5. Can I refinance my VA loan if I have bad credit?
Yes, you can refinance your VA loan even if you have bad credit. However, your credit score will affect your interest rate and loan terms.
6. What are the eligibility requirements for VA loan refinancing?
To be eligible for VA loan refinancing, you must have an existing VA loan, be current on your mortgage payments, and live in the property you want to refinance.
7. Does VA loan refinancing require an appraisal?
It depends on the type of refinance you choose. Cash-out refinancing always requires an appraisal, while VA streamline refinancing may not require one in some cases.
8. Can I refinance my non-VA loan with a VA loan?
No, you cannot refinance your non-VA loan with a VA loan. VA loans only allow you to refinance your existing VA loan.
9. How long does it take to complete a VA refinance?
The time it takes to complete a VA refinance depends on various factors such as the lender’s processing time, your financial situation, and the type of refinance. However, on average, it takes around 30 to 45 days to complete a VA refinance.
10. What is the difference between VA streamline and cash-out refinancing?
The VA streamline refinance is a simplified refinance program that allows you to lower your monthly payment or switch from an ARM to an FRM. On the other hand, cash-out refinancing allows you to borrow against your home equity and use the funds for other purposes.
11. How much can I borrow with a VA cash-out refinance?
You can borrow up to 100% of your home equity with a VA cash-out refinance.
12. Should I consider refinancing my VA loan?
You should consider refinancing your VA loan if you can get a lower interest rate, reduce your monthly payments, shorten your loan term, or switch from an ARM to an FRM.
13. How can I find the best VA loan refinancing rates?
You can find the best VA loan refinancing rates by comparing quotes from multiple lenders, checking online reviews, and asking for recommendations from friends and family.
Conclusion
In conclusion, VA loan refinancing can be an excellent way to save money on your monthly mortgage payments, but it’s crucial to understand the current VA loan refinance rates and your eligibility requirements before making any decisions. We hope this article has helped you gain a better understanding of VA loan refinancing rates and its various aspects. Don’t forget to shop around for the best rates and terms before finalizing your refinance.
Remember, refinancing is a significant financial decision that can have a long-term impact on your financial situation. So, make sure to consult with a professional financial advisor before proceeding with any refinancing options.