VA loan interest rates have dropped to record lows during the last part of 2008. Now is the time to refinance your va home loan to a lower rate. If you're paying more that 6.25% for a va loan and intend on keeping your home for 3 or more years, now is the time to act. Military home owners can reduce their monthly payment plus save tens of thousands of dollars over the life of the loan by using their va benefits and the department of veteran affairs VA Streamline loan program

3 Options for VA Loan Refinance

VA Streamline Refinance - Lower your current VA Loan rate with a VA Streamline Refinance loan! This loan is also known as an Interest Rate Reduction Refinance Loan (IRRRL).

Cash Out Refinance - If you have equity in your home, you can use the “Cash Out Refinance” loan to use the cash for paying debts.

Conventional to VA Refinance - If you’re an eligible veteran and you current loan is not a VA loan, you may be able to refinance using your va benefits.

1 - VA Streamline Refinance

If you have a VA Loan with a higher interest rate than current rates, you can refinance with a VA Interest Rate Reduction Refinancing Loan, or IRRRL, with no out-of-pocket closing costs.

This is the easiest and most popular VA Refinance program. With historically low rates, almost everyone can benefit from a Streamline Refinance loan.

Streamline Refinance Benefits

• No out-of-pocket costs
• No monthly mortgage insurance required (saves you $100 or more per month)
• No appraisal required
• No income requirements  
• NO credit check
• Only .5% funding fee!
• Very little paperwork
• Fast and easy!
• Save thousands of dollars over the life of the loan.

2 - Cash-Out or Debt Consolidation

If you equity in your home, you may be able to use your VA benefits to refinance and receive cash out up to 90% of your home's value. This money can be used to pay off debts, make home improvements, or it can be put towards other expenses.

Cash Out Refinance Benefits

• No monthly mortgage insurance required (saves you $100 or more per month)
• Get cash out up to 90% of your home's value
• No out-of-pocket closing costs

3 - Converting a Conventional to VA Loan

If you have a conventional loan, you can refinance using your VA benefits. This may lower your rate and illuminate the need for private mortgage insurance. When a conventional loan is refinanced to a VA Loan you will be charged the VA funding fee, however it can be added to your loan.

Benefits of a Conventional to VA Refinance

• No monthly mortgage insurance required (saves you $100 or more per month)
• Lower your interest rate.
• No out-of-pocket closing costs
• Get up to 90% of your home's value as cash back.

VA Loan Refinance Comparison Chart	VA Streamline Refinance	VA Cash-out Refinance	Convention to VA Loan
Cash-out Allowed	No	Yes	No
Credit reviewed	No	Yes	Yes
Income considered	No	Yes	Yes
Appraisal Required	No	Yes	Yes
Combine 1st and 2nd Mortgage	No	Yes	Yes
Maximum Loan to Value (LTV)	No Maximum	90%	100%
Maximum Loan Amount	$417,000	$417,000	$417,000
Late mortgage payments allowed In Last 12 Months	1(30 day)	0	0
Property Must Be Owner Occupied	No	Yes	Yes