7 surprising perks of VA loans

You can refinance with a VA loan, too

Perhaps you took out a VA loan several years ago when interest rates were higher. There are three ways to refinance into a new and cheaper mortgage.

The Interest Rate Reduction Refinance Loan is for borrowers with a history of on-time payments. The application process doesn't require a home inspection, appraisal, credit check or income verification.

The program’s purpose is to reduce monthly payments, so you’re not allowed to take cash out of your home or consolidate other loans.

If you want to do that, you must request a cash-out loan, which requires a full-blown application process, including a home appraisal.

VA loans are one of the few types of mortgages that can be refinanced when the borrower is behind on payments. A loan officer must analyze each case, determine why the homeowner got in trouble and ensure the problem has been resolved. For instance, a borrower might have been laid off but recently returned to work.