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: The lowest available interest rate
- Low Credit Scores Accepted: As low as 500 with Peoples Bank & Trust
Who Should Consider It?
- Veterans or servicemembers needing cash.
- Military 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 and better terms.
Key Benefits
- Lower Payments: Reduce monthly mortgage costs
- Simplified Process: No appraisal, asset or income verification
- No Minimum Credit Score Required: Unlike most lenders we don't need a credit score
- Flexible Terms: Adjust term lengths to suit goals
Who Should Consider It?
- Veterans or servicemembers with a high-rate VA loan
- Homeowners seeking lower payments without cash out
- Veterans who are in adjustable-rate mortgages looking for a low fixed rate
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 wholesale rates available
- Fast Closings: IRRRL's typically close in 2 to 3 weeks
- Military-Focused: VA loans are our specialty
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 and save thousands
Steps to Get Started:
- Decide if you need cash or monthly savings
- Contact us
- We will discuss your options and give you our recommendation
- Apply through our online portal
Things to Consider Before Refinancing
- Closing Costs: We will roll your costs into the new loan so there are no out-of-pocket expenses
- Loan Term: You have the option to reduce your loan term or choose a new 30-year loan to lower payments
- Equity: Access the equity in your home to pay down high interest credit cards, complete home-improvements or for any other reason you need cash
- Rate Savings: Save thousands of dollars every year by lowering your interest rate.
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 money every month, access your homes equity, or simplify your mortgage. With Peoples Bank & Trust, you receive tailored service, wholesale rates, and a stress-free process.
Ready to refinance your VA home loan? Contact Peoples Bank & Trust Company today to discuss your options.
