The VA’s Cash-Out refinance loan allows qualified veterans to refinance their conventional or VA loan into a lower rate while extracting cash from the home’s equity.
With the VA Cash-Out refinance option, you have the opportunity to turn your home equity into cash. This shouldn’t be confused with a home equity loan, which is a second loan that runs alongside your current loan. The VA Cash-Out refinance loan replaces your existing mortgage instead of complementing it.
While it might sound odd, homeowners aren’t required to take out cash with these refinance loans. That means qualified veterans with non-VA loans can use this benefit to simply take advantage of lower rates, to get out of an adjustable-rate loan, or to eliminate costly mortgage insurance with other loan types.