If you have a VA loan and would like to either refinance for lower monthly payments or access the money you’ve invested in your home (and accrued as equity), you may want to look into VA refinance options. You may find that a VA refinance can be exactly what you need to get you through a tough time financially or to free up assets. The following information should help you determine which VA refinance options are best for you.

If You Want Cash Back

If you already have a VA loan and you want to access some of your equity in your home, you can refinance using a VA cash out refinance option. A cash out refinance allows you to refinance your existing VA mortgage and take out some or all of the equity built up.

What Can You Use a VA Cash Out Refinance For?

You are free to use the money you take out through a VA cash out refinance for anything you please. There are no limitations on how you use the money, which means you could finance college, start a business, make home repairs, take a cruise, redecorate your home, or just plain build up a cushion in your bank account.

What if You Wish to Improve Your Home’s Energy Efficiency With the Money?

If you wish to make your home more energy-efficient, be sure to check into additional options such as the Energy Efficient Mortgage option. You may get even lower interest rates on this specific refinance. This option is only available if you prove you will save energy over time using the government’s approved Home Energy Rating System report. Money from such a loan can be used to purchase energy-efficient appliances or do such projects as insulating your home or replacing inefficient heating and cooling systems.

If You Just Need Lower Monthly Payments

If you’re not looking to take out any money, but want to refinance such that you owe lower monthly payments, you’ll want a VA streamline refinance.  Streamline refinances work like this: you will get to refinance your existing mortgage into a new loan with lower interest rates, which lowers your monthly payment obligations. You won’t get any money out, but you’ll save money each month. You can only apply for such a mortgage if you already have an existing VA loan.

If You Are Drowning in Debt

If you need to consolidate debts and pay off high interest credit cards and other financial obligations, consider a VA debt consolidation refinance. This option will allow you to refinance your existing VA loan and use the equity you’ve built up to pay off debts, which can lower how much you’re paying out in interest to the many various lenders. It can also help you gain control over your finances, since the consolidation may give you a fresh start in regards to other credit obligations and spending habits.

What if You Have a VA Loan, But Are Behind on Payments?

If you are behind on your mortgage payments and need help, immediately contact both your lender and the Department of Veteran Affairs to explore options. Ask about an interest rate reduction refinancing loan, which is essentially the same as a debt consolidation loan, only tailored to help those who are behind on mortgage payments. Don’t delay, as the passage of time may eliminate some of your possibilities.

What if You Are a Veteran but Do Not Yet Have a VA Mortgage?

Both active duty and veterans alike can refinance conventional loans through VA loan refinancing options. You’ll discover VA loans typically offer the following advantages over conventional home loans:

• No Down Payment – VA loans are one of the only zero-percent down home loan options that remain. In comparison, a conventional loan may require anywhere from 10-20% percent down.

• No PMI – You won’t have to pay private mortgage insurance because the government insures all VA loans. That can save you quite a bit over the life of a loan.

• Lower Interest Rates – Lenders charge interest rates based off risk and return calculations. Because the government insures VA loans, lenders are willing to offer lower rates to veterans taking out VA loans.

• Easier to Qualify – The qualification requirements for VA loans are less stringent than they are for conventional loans. You may be able to qualify for a bigger loan or a lower interest rate through a VA loan than you would if you were applying for a conventional loan.

If you currently have a conventional loan but are a veteran or are currently an active duty military personnel, you may want to further investigate the advantages of a VA loan. You may also want to compare VA refinance options with other government-backed loan and refinance options to make sure you choose the deal that is best for your unique situation. For most veterans, VA loans tend to offer the best benefits, but you won’t want to overlook a more appropriate option if there is one.

Refinancing is a great individuals for those struggling to make their payments or for those that want to save some money. Learn more about refinancing, because wouldn’t you like to know how much you could be saving?