Oklahoma VA Cash Out Refinance
Are you looking to tap into your home’s equity as a veteran or active duty military memeber? Consider a VA Cash Out Refinance. Access funds for expenses or investments. Explore your options today!
If you’re a veteran or active-duty military member living in Oklahoma, and you own a home, you might have heard about VA Cash Out Refinance. But what exactly is it? Well, it’s a type of loan that lets you take cash from the equity in your home. This means if your home is worth more than you owe on your current mortgage, you can borrow that extra amount. You can use this money for almost anything you want, like paying off debt, fixing up your house, or even going on a vacation.
Key Features of VA Cash Out Refinance
- Converts home equity into cash. This loan turns the part of your home you actually own into money you can spend.
- New loan replaces the old one. When you get a VA Cash Out Refinance, your new loan pays off your old mortgage. So, you only have one loan to worry about after.
- Interest rates are often lower. These loans can have lower interest rates compared to credit cards or personal loans, which saves you money.
Benefits of VA Cash Out Refinance
Opting for a VA Cash Out Refinance offers several benefits, especially if you’re living in Oklahoma and trying to manage your finances or improve your home. Here are a few advantages:
- Get cash for what you need. Whether it’s home improvements, debt consolidation, or another important expense, you can get the cash to cover it.
- Potentially lower your interest rate. If interest rates have dropped since you got your original mortgage, refinancing could lower your rate and save you money every month.
- No need for mortgage insurance. VA loans don’t require private mortgage insurance (PMI), even if you borrow more than 80% of your home’s value. This can lead to significant savings.
VA Cash Out Refinance Requirements
When you’re thinking about a VA Cash Out Refinance in Tulsa, Oklahoma, there are specific requirements you need to meet. Let’s take a look at what those are:
- Certificate of Eligibility (COE). You need this document to prove you’re eligible for VA loan benefits. It shows your service type and duration.
- Primary residence only. The home you want to refinance must be where you live most of the time. This loan can’t be used for a vacation home or rental property.
- Credit score and income check. Your lender will check your credit score and make sure you have enough income to pay back the loan. Each lender might have different requirements, but generally, a decent credit score and steady income are needed.
- Home appraisal. An expert will come to check out your house and figure out how much it’s worth. This helps determine how much money you can get from your refinance.
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Pros and Cons of VA Cash Out Refinance
Every big decision comes with its upsides and downsides, and choosing a VA Cash Out Refinance is no exception. Here’s what you need to know:
Pros
- Easy access to cash. You can turn your home equity into cash for pretty much any need or goal you have.
- Consolidate debt. Use the cash to pay off high-interest debts like credit cards, which can save you money and simplify your bills.
- Improve your home. If there’s a remodel or repair you’ve been putting off, this could be a great way to fund it and potentially increase your home value.
Cons
- Closing costs and fees. Just like with your original mortgage, refinancing comes with costs and fees that can add up. Make sure you understand these before proceeding.
- More interest over time. If you extend your loan term (how long you have to pay it back), you might end up paying more interest over the life of the loan, even if your monthly payment goes down.
- Risk of foreclosure. Since this loan is secured by your house, not being able to make payments could mean losing your home.
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Greg and Laura worked tirelessly on a recent refinance for my husband and I. There were some odd circumstances that may have led others to give up, but they worked it out and got us a great deal. I will say it felt like they did all the heavy lifting for us and made it pretty simple on our end. We appreciate them so much.
How to Apply for a VA Cash Out Refinance in Oklahoma
Applying for a VA Cash Out Refinance in Oklahoma, can be a smooth process if you follow these steps. Let’s break it down:
1. Collect Your Documents
You'll need your Certificate of Eligibility (COE), recent pay stubs, W-2 forms, tax returns, and statements for all your bank accounts. Having these ready will speed things up.
2. Check Your Credit Score
Knowing your credit score can help you understand your chances of approval and the interest rate you might get. Try to clear up any errors on your credit report before applying.
3. Contact Scissortail Financial
Not all lenders offer the same rates or terms for VA Cash Out Refinance loans. As a broker, Scissortail Financial can compare offers from multiple lenders.
4. Complete Our Online Application
Complete our simple online mortgage application so you can view your offers including rates and terms.
5. Go Through Underwriting
This is where the lender checks all your documents and verifies your information. They might ask for more details, so be ready to provide anything they need quickly.
6. Close On Your Loan
If everything goes well, you'll get to the closing stage. This is when you'll sign all the paperwork, pay any closing costs, and officially start your new loan. After this, you'll have access to your cash.
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FAQ's
Oklahoma VA Cash Out Refinance FAQ's
Absolutely, a VA Cash Out Refinance can be very worthwhile, especially if you’re looking to access cash for significant expenses, consolidate debt, or take advantage of lower interest rates to save money over time. It’s particularly beneficial because it doesn’t require private mortgage insurance (PMI), which can lead to considerable savings. However, remember to consider the closing costs and the fact you could be paying more interest over time if you extend your loan term.
Yes, it is possible to do a 100% VA Cash Out Refinance, meaning you can borrow up to the full value of your home’s equity. Not all lenders offer this, and there are strict qualifications, but it is a unique feature of VA loans. This could provide significant financial relief or funds for large projects, but be cautious about leveraging your home equity fully.
The interest rate for a VA Cash Out Refinance can change daily and varies by lender. It’s influenced by factors like your credit score, loan amount, and the value of your home, as well as the overall market rates. To get the most up-to-date and accurate rate, you’ll need to contact a lender directly or check their websites. Keep in mind that rates are typically competitive and may be lower than conventional refinance options.
The VA cash-out rule allows eligible veterans, service members, and surviving spouses to refinance their existing VA or non-VA loan into a new VA loan and take cash out from the home’s equity. This rule was updated in 2019 to offer veterans more benefits, including the ability to borrow up to 100% of the home’s value. Additionally, it requires full underwriting, meaning your income, assets, and credit will be evaluated. A VA funding fee is also part of the process, which is a percentage of the loan amount and can be rolled into the loan or paid upfront.
