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VA Cash Out


VA cash-out refinance loans can be used by eligible borrowers in many ways. Some want to turn their home equity into cash for important expenses such as:

  • Home Improvements
  • Credit Card Balances
  • Family Emergencies
  • Medical Bills
  • Student Loans
  • College Tuition
  • Fund a Business
  • Car Loans
  • Short-term Loans

What could you do with a little extra cash? Borrowers can cash out up to 100% of the value of their homes using their mortgage benefits. Here is a list of the great benefits associated with these loans:

  • Up to 100% Loan-to-Value
  • Easier Qualifying Than Purchase Loans
  • No Private Mortgage Insurance
  • No Prepayment Penalties
  • Funding Fee Waivers for Those Who Qualify
  • Free Mortgage Counseling
  • Streamline Rate Reductions May be Available
  • Benefits Can Be Used Repeatedly If Entitlement Available and Eligibility Requirements Met

If you’re ready to start your refinance journey with American Pacific Mortgage, contact us now at 1-866-663-0826.

You Don’t Need Equity For A VA Loan Refinance

This loan refinance isn’t just for borrowers who want cash out of equity. Even if you don’t have any equity in your home, it’s possible to use this kind of loan to refinance a non-VA mortgage into a VA-secured loan without resulting in any cash to the borrower. This is known as a Rate and Term (R&T) Refinance Loan. If you use the VA program this way, you are simply refinancing for a different interest rate and/or term on your loan. Rate refers to the interest rate and term refers to the number of years left to pay off the loan. Often borrowers refer to this as a regular refinance loan, meaning it’s not a streamline or cash-out loan.

A very common bonus borrowers get with this type of refinancing is the elimination of monthly mortgage insurance premiums (MMIP). Conventional and FHA loans can require MMIP. This expense often adds an extra $100 or more to your mortgage payment. When you refinance from a loan that has MMIP to a VA loan, this expense goes away.

Do you want to eliminate MMIP by refinancing from your non-VA loan to one backed by the U.S Department of Veterans Affairs? We’ve got your back! Call us now at 1-866-663-0826.

You Don’t Need To Have a VA-Backed Loan To Get A VA Cash Out

It’s a common myth – some borrowers believe they can’t get a VA cash out unless they have a mortgage already backed by the Department of Veterans Affairs. This is simply not true. In fact, you may be eligible for this type of loan even if your current loan is FHA, conventional, a USDA home loan or any other type of mortgage.

Many advantages can come with switching from one of these types of loans to a mortgage backed by the VA. It may be easier to get approved than with other programs, your monthly payments may be more affordable and you’ll get access to free mortgage counseling should your loan ever go into default. These are just some of the benefits VA borrowers can expect when they refinance from another loan program.

For more information or to get started today, just provide us with the best way to reach you and one of our experienced loan representatives will call you as soon as possible. Or if you just can’t wait, give us a call at 1-866-663-0826.

You Don’t Need To Have A Current Mortgage At All To Get Cash Out

A bundle of cash can come in handy at any stage in life. If you own your home outright, you may still qualify for cash out of equity. The VA program allows for borrowers to cash out up to 100% of their home’s appraised value. Often, when a homeowner owes nothing on a mortgage, it means that the home may have been purchased a long time ago or it was inherited. A VA-approved appraiser will conduct a professional assessment of the property and compare it with other homes in the area to determine fair market value.

How Much Can You Borrow?

Several factors go into determining how much you can borrow. The following items are considered when deciding your cash out loan amount:

  • VA Loan Limits
  • Borrower’s Ability to Pay
  • The Amount of Equity You Have in Your Home

First, in each U.S. county where VA-backed mortgages are available, there is a loan limit. The limits have to do with the maximum loan amount the VA will guarantee, not a maximum loan amount. In most counties, the loan limit is $417,000. However, it can be more in certain high-cost housing markets.

Second, just because the loan limit is $417,000 in your area, doesn’t mean you have the ability to pay off a loan of that amount. Credit and income qualifying will determine how much loan you can afford.

Finally, the amount of equity in your home is also going to affect your cash out mortgage balance. If you have $50,000 in equity, then up to that amount can be considered for cash out as long as you qualify with credit and income. Whatever amount you cash out will be added to your original loan balance along with any fees your lender will allow you to roll in.

To find out how much you can borrow, let us connect you with one of our loan specialists now at 1-866-663-0826.

Will Cash Out Refinance Loan Raise My Monthly Payment?

It’s possible this kind of loan could raise your monthly payment. Any time you take equity and turn it into cash, your principal mortgage balance is going to increase. Whether your monthly payment goes up or not also depends on how your interest rate changes as a result of the refinance transaction. Consider this example:

A $200,000 original loan @ 6% for 30 years = $1,199* per month

A $220,000 refinance loan @ 4.5% for 30 years = $1,115* per month

As you can see, it’s possible your payment may go down with a cash out loan. In this example the interest rate was 1.5 points higher originally. So even by cashing out $20,000 in equity and adding that to the principal of the new loan, the interest rate of 4.5% was low enough to make the payments less. *This example shows the monthly payment with principal and interest only. Taxes and insurance are not included.

Every situation is different, and every borrower may have different priorities. But, if you’re seriously thinking about cashing in some of your equity, then one of our experienced cash-out loan professionals can help.

Contact us today at 1-866-663-0826 for more information on cash out refinancing.

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