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VA Cash-out Refinance Calculator Definitions

Principal

The portion of your monthly payment that applies to and reduces your loan balance is called principal.

Interest

Interest accrues on your loan every day. When you make a payment, the interest that has accumulated since your last payment is paid first, bringing your accrued interest balance to zero.

VA Funding Fee

While VA loans do not impose monthly or annual mortgage insurance, there is typically a funding fee that is added to the base VA loan amount at inception. The funding fee is determined by eligibility status, down payment, the purpose of the loan (purchase or refinance).

Subsequent Use

If this is not the first time you’ve used your VA loan eligibility, your new VA loan will be considered subsequent use when determining the applicable funding fee.

The VA funding fee can be waived in certain circumstances.

Escrow/Impound

Property Taxes

VA lenders may require that you pay your property taxes every year through your lender. The lender will divide the annual property tax amount by 12 and include it in your monthly house payment.

Homeowners Insurance

Similarly to property taxes, your lender will likely pay your homeowners insurance annually. This premium is divided by 12 and added to your monthly payment.

Since these payments are made annually (sometimes semi-annually or quarterly), your lender will hold the funds in an account called an escrow or impound account. The lender then pays from this account when the bills are due.

What is a VA Cash-out Refinance?

Eligible veterans and active duty military can access 100% of their VA appraised home value with a VA cash-out refinance.

With property values rising nationwide, many people are taking advantage of their positive equity to pay off debt, improve their home, and many other worthwhile reasons. Use our VA cash-out refinance calculator to estimate how much money you can use for nearly any reason.

  • 100% loan to value (LTV) permitted*
    *VA appraisal required
  • Cash back can be used for almost any reason, including:
  • Home improvements
  • Debt consolidation
  • Education expenses
  • Savings
  • Buy a car, boat, RV, etc...
  • Weddings
  • Graduations
  • Many, many more
  • It's a new VA loan, so you must qualify.
  • A VA approved lender will complete your request. The VA does not make loans.
  • VA funding fee is added to your loan balance (if applicable).
  • Veterans receiving service related disability are usually eligible for funding fee waiver.

VA Cash-out Refinance Process

Understanding the VA refinance process will assure your experience goes smoothly.

An approved VA lender will complete your request. Here's what to expect.

  • To begin you must contact a VA lender.
  • Your VA lender will complete a pre-approval by taking a complete VA loan application, verifying your employment/income, and assuring your credit and debt ratios are acceptable to VA guidelines.
  • Once pre-approved, your VA lender will order an appraisal through the VA to establish a home value upon which your cash-out refinance will be determined.
  • The VA appraiser will contact you to arrange a time to appraise the home.
  • When the completed appraisal is delivered by the appraiser to your lender, your lender will determine the amount of cash available to you.
  • Once the terms are spelled out and agreed upon based on your home's value, your lender will arrange the signing of the loan documents to close your loan.
  • After a three day rescission period, your loan proceeds will be delivered to you via ACH or wire transfer.

VA loans are available to eligible veterans, reservists, and active duty military personnel. If your current mortgage is a VA loan or you've had a VA loan in the past, that's okay. Your VA eligibility is typically restored upon paying off your previous VA loan, and VA eligibility is simultaneously restored when paying off an existing VA loan.

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