For eligible* Veterans, you could refinance with an interest rate reduction refinance loan (commonly referred to as an IRRRL) or a cash-out refinance loan.
The first option—an IRRRL—allows you to refinance your current VA-backed home loan through a streamlined process. This refinance allows you replace your current loan terms to potentially lower your monthly mortgage payment.
The second option—a cash-out refinance—allows you to tap into home equity for renovations, repairs, or upgrades to your home, or to take a vacation (there are no restrictions about how you use the cash). Your current loan can be conventional or VA, and you might be able to refinance up to 100 percent of the home’s value.
*For information on how to secure a Certificate of Eligibility (COE), visit here.
**A VA interest rate reduction refinance loan may be done with no out-of-pocket costs if all costs are included in the new loan or the interest rate on the new loan is high enough to enable the lender to pay the costs.