When you’re looking for cash to pay off bills, debt, or even fund a renovation, your largest asset – your house – can often be the easiest way to get help. For veterans, this help comes in the form of a VA Cash-Out Refinance loan, which allows you to access additional cash for any other needs, and can even lower your mortgage interest rates.
However, an added benefit of the VA Cash-Out loan is that you can refinance a home with a non-VA loan into a new VA loan under preferential rates and terms. If you bought your first home in Orange County with a conventional mortgage, you can ease your burden of carrying that loan by refinancing with the VA.
How A VA Cash-Out Refinance Can Help Fund Your Needs
Unfortunately, veterans are one of the highest-risk groups when it comes to debt, as many are young when beginning their service and the amount of time spent away from home can wreak havoc on record-keeping. In fact, according to the CFPB, the largest reported financial complaint service members have is about debt collection.
Rather than paying high interest on credit cards or other loans, a VA Cash-Out loan lets you to take out a larger mortgage on your current home, allowing you to use the rest to fund whatever it is your current needs are – whether that is paying off debt or just taking a much-needed vacation. In fact, some of the most common uses of funds from VA loans include:
- Home repairs
- Home upgrades
- Education costs
- Emergency costs
- Debt repayment
How A VA Cash-Out Refinance Can Help With Your Current Mortgage
If you’re holding a conventional mortgage on a property, but you qualify for a VA loan, it’s in your best interest in the short and long-term to refinance, as you can end up paying less over the life of the loan. Once you’re approved for a VA Cash-Out loan, you can use that money to pay off your existing mortgage, and your new terms going forward will be under VA guidelines.
For veterans, the VA Cash-Out Refinance loan is a pathway to clearer finances and less headache. Whether you want to stay in your home in Anaheim and make some upgrades, or you’re ready to take back control of the mortgage on your home in Irvine, making use of your largest asset will help you get cash in hand now.
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