Va Funding Fee Chart For Cash Out Refinance
When it comes to a cash-out refinance, there are many factors to consider, including the VA Funding Fee. The VA Funding Fee is a mandatory fee paid to the VA to help fund the program and ensure its sustainability. In this article, we will discuss the VA Funding Fee Chart for a cash-out refinance.
What is a Cash-Out Refinance?
A cash-out refinance is a type of refinance where a borrower takes out a new loan for more than the amount owed on their existing mortgage. The difference between the two loan amounts is then given to the borrower in cash. This allows the borrower to access the equity they have built up in their home and use it for other purposes, such as home renovations or debt consolidation.
What is the VA Funding Fee?
The VA Funding Fee is a one-time fee paid to the VA by borrowers who use the VA Home Loan program. The fee is used to help fund the program and ensure its sustainability. The amount of the fee varies depending on the type of loan, the amount of the down payment, and whether the borrower has used the program before.
VA Funding Fee Chart for Cash-Out Refinance
The VA Funding Fee for a cash-out refinance is based on the loan amount, the type of loan, and whether the borrower has used the program before. The following chart shows the VA Funding Fee for a cash-out refinance:
| Type of Veteran | Down Payment | First Time Use | Subsequent Use |
|---|---|---|---|
| Regular Military | N/A | 2.30% | 3.60% |
| Reserves/National Guard | N/A | 2.40% | 3.60% |
It's important to note that the VA Funding Fee can be rolled into the loan amount, so borrowers don't have to pay it out of pocket at closing. However, this will increase the overall cost of the loan.
Conclusion
A cash-out refinance can be a great way for homeowners to access the equity they have built up in their home. However, it's important to consider all of the costs associated with the refinance, including the VA Funding Fee. By understanding the VA Funding Fee Chart for a cash-out refinance, borrowers can make informed decisions about their home financing options.