It may be the time to consider the many options available for refinancing your VA Home Loan.
Whether you need money to consolidate high interest credit card debt, pay for college tuition, buy a new car, or make home improvements to your home, VALoans.com can find a way to get you the cash you need through a refinance.
A VA refinance transaction involves repayment of your current real estate debt from the proceeds of your new VA mortgage that has the same borrower(s) using the same property. This is called a "Cash Out" Refinance.
Cash-Out Refinances are used for homes that are used as a principal residence by its owner. That owner can refinance for up to 90% of the appraised value (Not available in Texas) plus all closing costs if the property can withstand the designated loan to value ratio. There is no minimum amount of time that you must own your home, yet your home must have sufficient equity to qualify for the loan.
If you refinance with cash out then yes you would need an appraisal and ultimately you would have to come up with the difference. BUT if you do a VA streamline without any cash out only a rate reduction an appraisal is not needed there for you would be able to lower your rate and your payment. If you are not working with someone or are not satisfied with the service give me a call and we can walk through this together.
Licensed Mortgage Loan Originator, NMLS# 243087
American Mortgage Services CO NMLS# 259805
For example, if you owe $150,000 and your home appraises for $140,000, then you would have to pay the $10,000 difference at closing.
You will also incur some closing costs but it's difficult to predict what they will be as Lender Fees vary greatly. Some Lenders will also pay a portion of your closing costs as part of the loan.
I recommend contacting your current lender and one or two other lenders to obtain an estimate of your closing costs and what programs they currently offer.
Keep in mind that you will have to come to the table with closing costs.
All the best,
Roswell Moore, CMPS
Certified Mortgage Planner
(480) 422-5095 Direct
Bank of America Home Loans