Sponsored Post: The difference between a VA IRRRL and Cash Out refinance

Posted on February 26th, 2008 in Miscellaneous by Smarty

For those veterans who already have a mortgage and are looking to refinance with the VA there are options to consider. What are you refinancing for? Do you want a lower interest rate, or cash out of the equity you have in your home?

The VA offers both Interest Rate Reduction Refinancing Loans (IRRRL) and Cash Out refinancing loans. If you are considering refinancing with the VA you should know the difference between these two types of loans. Here are some difference you should consider:

* An IRRRL is used for veterans who want to refinance an already existing VA loan in order to get a lower interest rate, and a Cash Out is used to pay off any debts or take money out of equity for whatever your needs.

* With an IRRRL the interest rate must be lower than the mortgage loan you have now unless you are refinancing into an ARM or for energy efficient home improvements, and with a Cash Out you can refinance into any interest rate.

* With a Cash Out refinance there is no monthly payment minimum or maximum requirements, and with an IRRRL the new payment needs to be lower than the old payment unless you are refinancing from an ARM to a fixed interest rate or are financing the cots of energy efficient home improvements.

* With an IRRRL you can only refinance the existing loan plus fees and the cost of energy efficient home improvements, but with a Cash Out refinance you can take out cash from your equity as long as it does not go over 90% of the appraised value of the home.

* With a Cash Out refinance you are guaranteed $36,000 to be insured by the VA on your new loan, and with an IRRRL you are guaranteed 25% of your loan amount.

* An IRRRL can have points on the loan but only 2 points are allowed to be financed into the new mortgage. With a Cash Out refinance you are allowed to have any amount of negotiated points in your loan as long as you stay below the 90% home value limit.

Both of these VA refinancing options are available to veterans who have their entitlement intact. If you have a current loan that is not guaranteed by the VA then you should consider refinancing with a VA loan in order to possibly get a better interest rate and more favorable terms. Be sure to consider the attributes and guidelines of each type of refinancing option before you choose which one to use. For more information on the VA Home Loan refinancing options go to www.va.gov

What Do You Do With Your Coins?

Posted on August 21st, 2007 in Miscellaneous by Smarty

I usually prefer to pay by credit card when possible to avoid carrying loose change in my pockets. But once in a while I cannot avoid it and receive loose change from paying change. I normally empty my pockets when I get home and store all the loose changes in a jar. I only store coins less than a quarter. I find it easy to spend quarters so I keep quarters outside the jar.

I also have a coin box on my desk at work. I leave the quarters outside the box and use them to buy breakfast. Sometimes when I have a huge stack of quarters, my coworkers would exchange them for bills. They need the quarters for laundry.

I use to like counting coins when I was a kid. Now, I’m past that stage, and I think it’s a waste of time. I would need to use the Coinstar machines when my coin jars are full. I remember during last winter Coinstar had a deal where you can exchange the full value of your coins for an Amazon certificate. That would be a nice deal.

From Homeless to Multimillionaire

Posted on July 27th, 2007 in Miscellaneous by Smarty

Meet Chris Gardner, whose real-life rags-to-riches story was turned into a Hollywood movie, The Pursuit of Happyness. Find out how Gardner rose from the streets to great wealth.

Saturday’s Quote

Posted on July 7th, 2007 in Quotes by Smarty

An economist is someone who sees something working in practice and asks whether it would work in principle. - Stephen M. Goldfeld

Sunday’s Quote

Posted on July 1st, 2007 in Quotes by Smarty

Money won’t buy happiness, but it will pay the salaries of a large research staff to study the problem. - Bill Vaughan

Saturday’s Quote

Posted on June 30th, 2007 in Quotes by Smarty

If you can actually count your money, then you are not really a rich man. - John Paul Getty

Sunday’s Quote

Posted on June 24th, 2007 in Quotes by Smarty

If all economists were laid end to end they would not reach a conclusion. - George Bernard Shaw

Saturday’s Quote

Posted on June 23rd, 2007 in Quotes by Smarty

I never knew how poor I was until I started making money. - Michael

Sunday’s Quote

Posted on June 17th, 2007 in Quotes by Smarty

All I’ve ever wanted was an honest week’s pay for an honest day’s work. - Steve Martin

Saturday’s Quote

Posted on June 16th, 2007 in Quotes by Smarty

The law, in its majestic equality, forbids the rich as well as the poor, to sleep under bridges, to beg in the streets and to steal bread. - Anatole France

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