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will my payment increase after VA cashout refinance?

i could do with the cash because i need a new car but dont want to do it if my mortgage payment or interest will significantly increase by bernard_inswell78... from Tullahoma, Tennessee. Nov 12th 2014 Reply


Stephen Josleyn (SteveJosleyn)
#10 ranked lender in Tennessee - 2 contributions

If the new loan amount is higher than the initial VA loan then the new payment is likely to be higher. However, if your old rate is 4.75% or higher it is quite possible that the new payment could be lower, again, depending on how much "cash-out" you get at closing. For actual numbers give me a call at 615-391-9858. Steve Josleyn, Primary Residential Mortgage, Inc.

Nov 12th 2014
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,112 contributions

That depends Bernard, if your loan amount is increasing and/or your interest rate is increasing your payment will go up. If the rate is decreasing then this could offset the increase in the loan amount. However, what do you plan on doing with the cash out? If it's for paying off debt the overall monthly out of pocket savings could be more than the potential increase in your mortgage payment. Talk with a local loan officer and have them present you with all of your options so you can see the cost vs. benefit for each scenario. Best wishes, Sean

Nov 12th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,659 contributions

There's just not enough info to properly answer your question.. How long has your current loan been in place? what's your current interest rate? How much cash do you need? What's your outstanding balance? ETC, ETc, Etc.. In general, if you borrow more money, your payments will be higher.. but if you have a high interest rate now, but your new rate is drastically reduced, then you could potentially borrow more money and still lower your payment.. but without knowing all the details, it's impossible for anyone here to say.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead, which typically results in lower rates and fees than most of the larger lenders.. 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

Nov 12th 2014
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,240 contributions

As you are seeing from other answers, Bernard, it just depends on the details of your situation: current interest rate and loan balance, amount of the new loan, how long you have already paid on the current mortgage, etc. I'd love to help if you'll allow me to run some scenarios for you.

Nov 12th 2014
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Nancy J Releford (nancyreleford)
#1 ranked lender in Tennessee - 224 contributions

As stated by everyone here Bernard, it depends on your situation. Interest rate, loan amount, term etc. I'm located in Murfreesboro, give my office a call & we discuss your options.

Nov 12th 2014
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Christina Hayes (CreditRepairExpert)
#8 ranked lender in Tennessee - 68 contributions

More information is required to accurately answer your question. How much do you owe, how much do you need to "cash out", what is your current interest rate, do you have a pre-payment penalty? And so forth. I recommend all mortgage clients to my associate: http://keithgoeringer.com/ You also need to understand if your credit score has drastically declined since you first purchased your home, you could be looking at a higher rate due to your credit scores. The only sure way to know, is to have Keith pull your credit and discuss your options. Best of Luck.. Christina

Nov 14th 2014
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