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If you meet the requirements for a VA loan but you have some other type of loan it is possible that your mortgage broker in Albuquerque can help you refinance to a VA loan. Since refinancing means that you are getting a brand new loan it is conceivable to move from a FHA or conventional loan to a VA loan. Here are a few scenarios. Refinance With Cash-Out If your home is worth more than your existing loan balance and you wish to use some of that extra value then you can take out a VA refinance cash-out loan. Applying for this loan is identical to applying for a home purchase. The mortgage broker in Albuquerque will need proof of income, copies of W-2 forms from the past two years, copies of savings and retirement accounts and proof that you own the home. The VA allows qualified borrowers to get 90% of the home's value in a new loan. Once the loan is approved there is no restriction to how the money can be used. You may pay off existing loans, buy an automobile, take a vacation or anything else with the funds. Rate And Term Refinance Some people are not interested in getting any equity out of their home. Instead they just want to lower the mortgage interest rate or lower the overall remaining term. Cutting the term down from 25 years to 10 or 15 years can drastically save the borrower lots of interest even though the monthly payment may rise. With this type of refinance it is possible for the borrower to get a loan equal to 100% of the home's value. Although the VA charges a funding fee, this type of loan does not require any type of private mortgage insurance (PMI). The lack of PMI can save the borrower a considerable amount of money each month compared to the previous loan. Just like the last scenario, the borrower(s) will have to submit a full application to their mortgage broker in Albuquerque. The lender can also help the borrower obtain the VA eligibility certificate. Going From An Adjustable Rate To A Fixed Rate Considering the current mortgage rates it makes a lot of sense to move from an adjustable rate loan to a fixed rate VA loan. Whether it is cash out loan or a simple refinance, the VA mortgage will be a better option for the borrower over the long term. If you have served in the military as active duty or as a reservist then you may qualify for a VA mortgage loan. It would really be worth your time to chat with a mortgage broker in Albuquerque and find out how you could benefit from a VA refinance. Author Info: Author has years of experience in real estate and mortgage industry and have been serving Albuquerque area mortgage clients for over 12 years. If you living in Albuquerque and have any question about Home Refinance Albuquerque or Albuquerque Home Loan then call us at Call us at (505) 830-9685
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