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The Department of Veterans Affairs (VA) Cash-Out Refinance Loan is for homeowners who want to trade equity for cash from their home. These loans can be used as strictly cash at closing, to payoff debt, make home improvements, and pay off liens. The Cash-Out Refinance Loan can also be used to refinance a non-VA loan into a VA loan.
The refinance results in a net tangible benefit to the borrower. The definition of net tangible benefit varies based on the type of loan being refinanced, and the interest rate and/or term of the new loan. Cash in excess of $500 may not be taken out on mortgages refinanced using the streamline refinance process.
Refinancing could help you find a better interest rate. You may also be able to consolidate debt and depending on your loan, make extra repayments, open an offset account or access redraw. Unlock your equity You may also be able to use the equity in your existing property for renovations, investment opportunities, or other purpose.
This means you have $150,000 in equity. Any cash you get because you paid down the principal can put you towards the starting point of paying off your mortgage. The VA funding fee for a cash-out.
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