The VA offers two flexible refinance options. If you have an existing VA loan and only want to lower your interest rate or convert from an ARM to a fixed rate loan, a VA Streamline might be right for you. If your existing loan is not a VA loan or you wish to get cash out for some reason, then you might consider a regular VA refinance which is also nicknamed a “VA Cash Out” refinance.
VA Streamline (IRRRL) Refinance
Often called a “Streamline” refinance, the Interest Rate Reduction Refinance Loan (IRRRL) option is great for existing VA Loan holders who are looking to realize significant savings and take advantage of lower interest rates.
Cash-Out Refinance
A “cash-out” refinance is an option for those with a VA or conventional loan looking to take advantage of their home’s equity to access cash for home improvements, emergencies, pay off debt, or any other purpose.