Top Reasons Why Vets Seek a Refinance
Do you ever wish you could have a little extra cash? Don’t we all! Maybe there’s a vacation you would like to take or some things you need to buy for your home. Perhaps you have some high-interest debt that you need to get rid of. If so, you’re not alone!
All of us have been there at one time or another. Fortunately, there are more options available these days than ever before. And if you are a veteran, you are in an even better position. You may find that VA loans give you the cash you need without forcing you to hand over your first-born child.
What is the IRRRL program?
IRRRL stands for Interest Rate Reduction Refinancing Loan. It’s a special kind of loan available just to veterans.The best part is that the IRRRL program allows you to refinance your existing loans at a lower interest rate.
Think of it as Uncle Sam’s way of thanking you for your service. For those who have spent time overseas, this program makes it much easier to start a home back in the U.S.
Reasons to Seek a Refi
A major advantage of these loans is that you may be able to get one with a “no money out of pocket” condition. How exactly is that possible? This is usually done by taking the costs associated with a new loan and rolling them into the total amount of the loan. In other cases, the lender may choose to absorb the costs if the interest rate is high enough to cover them.
The result is extra savings that you could use to improve your overall financial situation. The number one reason to take advantage of refinancing is to tackle credit card debts. Remember, those pieces of plastic carry interest rates well into the double digits, which is typically much higher than your refinanced mortgage rate.
The number one reason to take advantage of refinancing is to tackle credit card debts.
Another great reason to seek a refi is to help save for retirement. While veterans do get some pretty good retirement benefits, it never hurts to save a little extra. If you’re behind on your savings, try putting the money you saved from refinancing into a 401(k) plan. This will make your savings work double time.
In short, the IRRRL program may mean serious advantages for vets. Whether you are looking to take a well-deserved vacation, pay off some high-interest debt, or just have a little extra cash on hand, a VA loan might be just what you need. If you haven’t already, look into your options today. You’ll be glad you did!