A VA Streamline Refinance allows Veterans, active service members, and select spouses who currently have a VA Home Loan to refinance into a lower interest rate VA Home Loan and achieve substantial monthly savings with a lower mortgage payment. VA Streamline Refinance loans require little paperwork and frequently there are little or no out of pocket closing costs. Borrowers can also include their closing costs into their total loan amount. Some VA homeowners can even obtain a VA Streamline Refinance without the requirement to have an appraisal.
The Streamline refinance (IRRRL) is an excellent way for homebuyers with an existing VA Home Loan to lower their interest rate and achieve substantial monthly savings with a lower mortgage payment. You cannot receive any cash from the loan proceeds. There is a funding fee of .50% with an IRRRL
The VA Cash-Out Refinance is an option for homebuyers with an existing Home Loan to access cash based upon the equity they have in their home for home improvements, to pay off debt, for emergencies, or for any other reason that they might have. There is a funding fee of 3.30% for a VA cash-out refinance.