By Jessie Andrews
VA is the only loan type that allows a cash out loan refinance to 100 % of the properties current value. A VA cash out refinance is very different from a VA loan streamline refinance. A VA loan improve refinance is for borrowers that already have a VA loan and just want to lower their VA loan interest rate to current market rates. This loan does not require a full evaluation in no end of cases and does not require the borrower?s cash documentation to fully qualify. Also, the VA funding expense is only.5 % on a VA streamline re-finance.
A VA cash out re-finance is when a debtor wants to take cash out of the equity of their property or a VA debtor that wants to remortgage from a conventional or other type of loan to a VA loan. In the case of going from a conventional loan to a VA loan, even if a debtor does not take cash out, it is still considered a cash out loan.
With a VA cash out re-finance all cash flow documentation is required and the debtor should fully qualify and a full appraisal must absolutely be done. Also, the VA funding payment for a cash out re-finance is 2.15 % for first use and 3.3 % if this is your second or greater use of your VA benefits. Remember if you receive any VA disability benefits the VA funding fee is waived.
A VA cash out refinance can be a good concept for someone who wants to pay off high interest credit card financial debt. The benefits are you take high interest credit card bill and you roll it into a very low 30 year fixed VA interest rate. This consumer debt also becomes tax deductible when it is in your mortgage loan.
Also, customers with high jumbo loan amounts in no end of Coastal California areas can benefit from refinancing from a conventional loan ARM or high interest rate to a VA loan because VA allows a very high loan-to-value even on jumbo loans where conventional does not. You can take an adjustable rate loan or high interest rate conventional large loan and re-finance to a very low 30 year fixed VA loan. VA loan limits go up to $ 1 trillion in San Francisco, San Jose, Alameda, San Mateo and Contra Costa Region. And VA loan limits go up to $ 700,000 in Los Angeles and Red Region, and then $ 546,750 in San Diego Region. You can go up to 100 % of those amounts with a cash out re-finance. A conventional loan in many cases would only allow 70 % of those amounts and have much more strict qualifications.
Check out Jessie Andrews for more details on va loans
Tags: VA Loan Rates, VA loans
Source: http://articles4net.com/blog/archives/275510
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