VA Cash Out Refinance: A Great Option

VA cash out refinance

VA Cash Out Refinance: A Great Option

An existing VA mortgage, just like any other mortgage, can be refinanced. With a VA Cash Out Refinance, you can refinance your mortgage for more than you currently owe, then pocket the difference.


Say you owe $50,000 on $120,000 house and want a lower interest rate. You also could use $20,000 cash to spend for that new car you need. You can refinance the mortgage for $70,000. You can likely get a better rate on the $50,000 that you owe on the house and you get a check for $20,000 to spend as you wish.

Cash-Out Refinancing is Special

Cash-out refinancing is very different from a traditional home equity loan. Here’s why:

  • A home equity loan is a separate loan on top of your first mortgage.
  • A cash-out refinance is a replacement of your first mortgage.
  •  The interest rates on a cash-out refinancing are usually, but not always, lower than the interest rate on a home equity loan.
  • You pay closing costs when you refinance your mortgage.
  • Generally, you don’t pay closing costs for a home equity loan.
  • Closing costs can amount to hundreds or thousands of dollars.

Basic VA Cash Out Refinance Qualifications and Requirements

VA Cash Out Refinance requirements are similar to when using a VA loan for buying your first home. Those eligible for a VA loan include:

  • Current Reserve and members of the National Guard
  • Active duty service members
  • Veterans with an Honorable Discharge (veterans of the Reserve and National Guard)
  • Unmarried surviving spouses
  • Commissioned officers of the Public Health and National Oceanic and Atmospheric Administration
  • Veterans that have been discharged under conditions other than dishonorable

In addition, VA cash out loan applicants will submit a Certificate of Eligibility (COE) which the lender can obtain for you fairly quickly.

Is a VA Cash-Out Refinance right for you?

If you qualify for a VA Loan, and think you could benefit from some extra cash via a VA Cash-out refinance, be sure to Check Rates Today!