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Will my interest rate go up if I refi with VA cashout?

There must be a "catch" for getting the cash-out. Do interest rates rise or do I spend more time paying of the loan? Details: VA mortgage 65% LTV, 700 credit by merisakobo79423617 from Avon Park, Florida. Oct 10th 2014 Reply


John Hunt (jhunt@ctcmortgage.net)
#234 ranked lender in Florida - 10 contributions

That depends on what interest rate you have now. Please call me anytime with questions as I'd gladly help you with any mortgage related questions you may have. My number is 954-234-7873 and I look forward to speaking with you soon!John HuntNMLS #288793CTC Mortgage Co., LLC

Oct 10th 2014
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David Ortega (DavidOrtega)
#53 ranked lender in Minnesota - 230 contributions

VA actually does not charge higher rates for a cash-out transaction. You would get the same type of rate and costs as someone looking to refinance a mortgage only on a VA loan. I would love to send you some quotes. They are free and we don't need to pull your credit to quote. Let me know. David Ortega - Satori Mortgage - www.SatoriMortgage.com - dortega@satorimortgage.com - 954-900-9788

Oct 10th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,588 contributions

There is no way to answer your question without knowing all the details, especially your current interest rate.. no way to say if your rate would be higher if we don't know what your current rate is!.. Anyway.. There so much that goes into determining one's eligibility, that in most instances, it's impossible to quote based on an internet post.. Most competent loan officers will not do it because of new laws that put restrictions on lenders and how and when they quote interest rates, so any loan officer who does without looking at the complete loan profile is probably someone you don't want to use since you would just be setting yourself up for disappointment. This all being said, there are lenders out there doing cash out refi's on VA loans.. some will go as high as 100% LTV and interest rates are very good right now, so if you want an accurate quote, your going to have to do it the ole fashioned way.. pick up the phone and contact a LOCAL mortgage broker.. once they see your complete loan profile, they can give you a written quote and you'll know exactly what you qualify for.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Oct 10th 2014
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Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

No extra charge for cash out; your new term will be 30 years, but you can make larger payments, in order to pay it off early.

Oct 10th 2014
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Good afternoon :-) There's no 'catch' for a VA cash out. Interest rates will not rise (as long as you make sure to get a FIXED RATE mortgage) and the time you will spend paying off your loan will depend entirely on you. The VA loan programs are designed to offer superior financing for veterans, so in my opinion there's truly no better option for financing. As a matter of fact, a huge portion of the clients I help are Vets in Florida just like yourself.Jason

Oct 10th 2014
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

That would depend on what your current interest rate is. I will say that VA rates are among the best out there and typically are lower than conventional loans. If the rate is a 30-year fixed the rate will never go up. I would talk with a local loan officer have them present you with all of your options and even give you a side by side comparison to other programs so you can see what one will be the best option for you.

Oct 13th 2014
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,875 contributions

I am assuming you are wondering if the interest rate you will get on a VA Cash out refinance is higher than a standard VA refinance??? I just priced it. On a VA loan, at 65% loan to value, the answer is NO. The interest rate is the same. BUT, generally speaking, taking cash out is considered higher risk. Usually you would get about a .125% higher rate for taking cash out, but this usually only kicks in at higher loan-to-value

Oct 13th 2014
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