Looking to get some cash by refinancing your VA home loan? A cash out refinance might be exactly what you're in search of. Not only can you take cash out from the equity in your home, you can also lock down a better interest rate.
Is a Cash Out Refinance the Same as a Home Equity Loan?
No. A home equity loan is a second loan on your property. With a cash out refinance, you still only have one loan to pay back. The new loan completely replaces your existing one.
On top of only having one loan, a homeowner doesn't even need to take money out on his own home. You can simply use the cash out refinance to get a lower rate, or to get yourself into a VA loan and remove the PMI (Private Mortgage Insurance) conventional loans require since your new VA loan will be backed by the government.
Cash out refinancing is typically a longer process than streamline refinancing, which does not require a credit check, bank authorization or income verification. However, with a VA streamline refinance, you cannot take out based on equity. Streamline refinancing is designed for veterans and active service members who simply want a better rate and monthly payment on their VA home loan.
Do I Have to Use the Same Lender?
If you were unhappy with your purchase lender, the good news is, you don't have to stick with them if you refinance. As is the case with a VA loan for a purchase, the smartest thing you can do is to shop multiple lenders and compare rates and service. We match you with up to five lenders who compete for your business, allowing you to find the right fit, and right rate.