Refinancing a Colorado VA Mortgage
VA offers several types of refinance:
Interest Rate Reduction Refinancing Loan (IRRRL): The exclusive purpose of this mortgage is to reduce the interest rate - and consequently the payments - on your mortgage.
There are a couple of unique details associated with the VA interest rate reduction solution:
- No appraisal is required.
- Income and credit are not evaluated so there is no issue of qualifying or being approved. Every veteran with an existing VA mortgage with a higher than current market rate will be approved for a rate reduction refinance, with few exceptions. Rules exist for who can be on the note and the maximum loan amount. Talk with your mortgage consultant for how the rules apply to your specific situation.
Keep in mind that there are costs associated with an interest rate reduction refinance. Typically these costs are rolled into the new loan, meaning that after refinance, your equity position in your home will be reduced. This also means that the outstanding balance on your mortgage will increase. Talk with your mortgage consultant about your rate reduction options, and to find out if it makes good financial sense for you to refinance.
Cash-out refinance mortgages:
Qualifying is the same as the purchase process.
The loan amount is limited by the maximum VA loan amount, and/or a 90% maximum LTV.
Converting a construction loan to a permanent loan is considered a refinance, and would be treated identically to the purchase process.
Last updated: Monday, 10-Nov-2008 10:04:29 EST
Copyright ©2002-2004 iHomeLoanInfo.com, All Rights
Reserved.
Copyright and Terms
of Use
