For veterans, active-duty service members, and eligible surviving spouses, a VA home loan refinance provides a pathway to lower mortgage payments and/or access to your home’s equity. Backed by the Department of Veterans Affairs, these loans offer unique benefits like no private mortgage insurance (PMI), the highest LTV options and relaxed credit guidelines. This guide explores the two primary VA refinance programs—VA Cash-Out Refinance and VA Interest Rate Reduction Refinance Loan (IRRRL)—and explains why Peoples Bank & Trust Company is the top choice for military homeowners seeking expert guidance and personalized service.
Understanding VA Home Loan Refinance Options
- VA Cash-Out Refinance Loan: Converts your home’s equity into cash while refinancing your existing mortgage (VA or non-VA) into a new VA loan.
- VA Interest Rate Reduction Refinance Loan (IRRRL): Streamlines refinancing for existing VA loan holders to secure a lower interest rate or adjust loan terms.
Why Refinance with a VA Loan?
VA home loan refinance options offer no PMI, competitive rates, and military-friendly terms, saving you thousands over the life of your loan.
VA Cash-Out Refinance Loan
What Is It?
A VA cash-out refinance replaces your current mortgage (VA, FHA, or conventional) with a new VA loan, allowing you to borrow up to 100% of your home’s appraised value and receive the difference in cash.
Key Benefits
- Full Equity Access: Borrow up to 100% of your home’s value.
- Versatile Funds: Use cash for debt consolidation, home improvements, or other needs.
- No Mortgage Insurance: Save on monthly costs.
- Competitive Rates: Typically among the lowest available.
- Low Credit Scores Accepted: As low as 500 with Peoples Bank & Trust.
Who Should Consider It?
- Veterans or servicemembers needing cash.
- Homeowners with non-VA loans wanting VA benefits.
- Those consolidating high-interest debt or funding upgrades.
Example: If your home is appraised at $400,000 and you owe $250,000, you could refinance for $400,000, receiving $150,000 in cash (minus closing costs and fees).
Pro Tip for Military Homeowners
Consolidate high-interest debt with a VA cash-out refinance to lower your monthly payments and save on interest.
VA Interest Rate Reduction Refinance Loan (IRRRL)
What Is It?
The VA IRRRL, or “VA streamline refinance,” allows homeowners with an existing VA loan to refinance into a new VA loan with a lower interest rate or better terms.
Key Benefits
- Lower Payments: Reduce monthly mortgage costs.
- Simplified Process: No appraisal or income verification.
- No PMI: As with all VA loans.
- Flexible Terms: Adjust term lengths to suit goals.
Who Should Consider It?
- Veterans or servicemembers with a VA loan.
- Homeowners seeking lower payments without cash out.
- Those wanting a fixed-rate mortgage.
Example: Refinance a $300,000 VA loan from 6.75% to 5.75% and save significantly on payments.
Did You Know?
An IRRRL with Peoples Bank & Trust can often close in 2 to 3 weeks, helping you save sooner with minimal hassle.
Comparing VA Cash-Out Refinance vs. IRRRL
| Feature | VA Cash-Out Refinance | VA IRRRL |
|---|---|---|
| Purpose | Access home equity | Lower rate/term |
| Eligible Loans | VA, FHA, or conventional | Existing VA only |
| Cash Access | Up to 100% | No cash out |
| Appraisal Required | Yes | No |
| Credit Score | 500+ | No minimum |
| Funding Fee | 2.15%–3.3% | 0.5% |
Eligibility for VA Home Loan Refinance
- Military Service: Veterans, active-duty, or eligible surviving spouses.
- Certificate of Eligibility (COE): We help obtain this.
- Credit and Income: 500+ credit for cash-out; none needed for IRRRL.
- Occupancy: Must be primary residence for cash-out.
- Funding Fee: 0.5%–3.3% unless exempt.
Save with Peoples Bank & Trust
Disabled veterans may qualify for funding fee exemptions. We ensure you maximize your benefits.
Why Choose Peoples Bank & Trust Company?
- VA Loan Expertise: Thousands of military families served.
- Personalized Support: Same loan officer throughout process.
- Competitive Rates: Among the lowest available.
- Fast Closings: IRRRLs in as little as 2–3 weeks.
- Military-Focused: Veterans are our priority.
Why Military Families Trust Peoples Bank & Trust
We make refinancing simple and stress-free.
Testimonials from Military Homeowners
Sgt. John M., Army Veteran:
“Peoples Bank & Trust made my VA cash-out refinance a breeze.”
Capt. Sarah L., Air Force:
“The IRRRL process was quick and saved me $200/month!”
Spc. Robert T., National Guard:
“As a disabled vet, I got fee exemptions. Highly recommend!”
How to Choose the Right Option
- Choose Cash-Out: Need cash or have non-VA loan.
- Choose IRRRL: Lower your rate on current VA loan.
Steps to Get Started:
- Define your refinance goals.
- Contact Peoples Bank & Trust for COE & eligibility.
- We compare your options.
- Apply online with expert guidance.
Things to Consider Before Refinancing
- Closing Costs: Can be rolled into the loan.
- Loan Term: May extend to lower payments.
- Equity Impact: Use equity for smarter financial moves.
- Rate Savings: Ensure rate savings justify refi costs.
Partner with Peoples Bank & Trust
Our VA experts will help ensure refinancing fits your financial goals.
Why Military Homeowners Should Refinance
VA refinance options empower you to save, access equity, or simplify your mortgage. With Peoples Bank & Trust, you receive tailored service, wholesale rates, and a stress-free process.
Call to Action: Ready to refinance your VA home loan? Contact Peoples Bank & Trust Company today or visit VA.gov for eligibility details.
