Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option
 

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100% VA Cash-Out Refinance

Does a 100% VA Cash-Out Refinance Make Sense?

Does a 100% VA Cash-Out Refinance Make Sense?

Orange County, CA – Veterans with VA home loans can refinance the full amount of their mortgage. This allows homeowners the potential to reduce their interest rate while adding or consolidating debt.

Nationwide, property values dropped roughly 30% from their peak in 2006. In many regions of California it was even greater. Homeowners have since seen their home values return strongly. Most have still not returned to their peak levels. But the renewed equity gives homeowners with VA loans the ability to refinance their loans up to 100% of their current value.

100% VA Cash-Out Refinance

Adding debt to an existing first mortgage is considered a cash-out refinance. What kind of debt can you add?

  • Pay off high interest rate credit card balances.
  • Use equity to renovate and rehab your home.
  • Consolidate a 2nd mortgage or home equity line of credit.
  • Pay off high interest auto loans or recreational vehicles.
  • Take out cash to pay college tuition.

A 100% VA cash-out refinance offers additional benefits for those looking to use their home’s equity.

Convert Consumer Debt Interest Into Mortgage Interest

Consumer debt is any financed debt not affiliated with a home. Interest on consumer debt can not be written off against your income. By rolling these types of debt into your home loan up to $100,000 can be converted to mortgage debt and written off.

Velocity of Debt Reduction

When consolidating higher rate debt by using a 100% VA cash-out refinance, you’ll be saving money. You can save money in a variety of forms.

  1. Reduced interest from higher rate consumer and mortgage debt.
  2. Longer amortization periods.
  3. Additional interest expense writeoffs.

By taking these savings and rolling them back into your mortgage as principal reduction payments, it will speed the pace of total debt reduction.

If you would like to explore what a VA cash-out refinance might look like for you, contact us.

Scott Storace

 

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