The American dream is different for everybody, but they all mean the same thing—to achieve success in society regardless of who they are or where they’re from. No matter how much the times have changed or how distinct people’s views are from each other, having a home remains a defining moment in any person’s life.
Unfortunately, even though purchasing a house is a dream of most people, it isn’t easy to achieve for most of the population.
How Mortgages Have Helped Americans
Although many people can’t pay for a house out of pocket, this doesn’t mean that they’ll never own their own home. Thanks to mortgages, anyone who qualifies for a loan can buy a home without having all the cash upfront. Even people who can pay for a house right away apply for a mortgage because it makes sense to do so in some cases.
The possibility of applying for a home loan has indeed helped millions of people achieve their version of the American dream. However, keep in mind that getting a mortgage still means borrowing money, and if you borrow money, you’ll be in debt.
The Burden of Home Loans
Depending on your financial situation and your required monthly payments, debt can certainly be burdensome. For example, you may have been able to buy the house, but your problem now is paying for the loan.
Although a mortgage has helped you own your dream home, the long process of paying for it is far from dream-like. Many people think that once you’ve been approved for a loan, you have to stick to it until you pay for every cent, but this isn’t the case!
For military members, you have a chance to get a lower interest rate on your mortgage and ease your burden!
On VA Cash-Out Refinancing
A VA mortgage may be quite different from the other types of home loans since it is only limited to eligible members of the military, but just like the others, you can also replace it with a new loan. With VA cash-out refinancing, you can change your existing VA mortgage with another loan while being able to take out cash against your home.
Since VA cash-out is the only loan that allows refinancing up to 100% of your property’s value, you can tap all the equity available. If you currently don’t have a VA loan, you don’t have to feel left out! As long as you meet all of the VA home loan requirements, you can use the cash-out refinance to convert FHA loans, conventional loans, or any other type of mortgage.
How It Works
If you were honorably discharged from the military or are on active duty, then you’ll be able to apply for a VA loan refinance or cash-out refinance. However, to convert your existing mortgage with a VA loan, you must first get a certificate of eligibility (COE) to verify that you meet all service requirements.
Since the Department of Veterans Affairs doesn’t provide VA loans, you’ll have to apply to various mortgage lenders. Getting approved for a VA cash-out refinance is just like any other refinancing option where you’ll have to meet a lender’s credit score and debt-to-income ratio requirements to qualify.
Aside from an in-depth portrait of your finances, you may also need to submit the following:
- W-2 statements and tax returns in the last two years
- Paycheck stubs for the month
- Other documentation your lender requires
Conclusion
Owning a home and paying for the loan you used to buy the house can be burdensome too many. But, with VA cash-out refinancing, you can ease your burden! As long as you work with the right company, you can find the best mortgage lenders with the lowest rates!
Are you thinking of VA loan cash-out refinancing but can’t find the right lender? Our team at PENNIX Mortgage can help you find the best for your circumstances! We can match you with the best mortgage lenders with loans that make the most sense for your situation. Get pre-approved today!
