While you get your kids ready for going back to school this fall, it’s a good time to reassess your own housing needs and ways to cut costs. According to Texas-based Military Mortgage Shop, veterans and their families may want to consider refinancing their home mortgage.  “VA three(3)-year and five(5)-year Adjustable Rate Mortgages (ARM) remain low, so it’s a good time to get the ball rolling if you are considering a refinance,” says owner and home loan specialist, Jeff Guthrie.

There are lots of reasons you might want to refinance. Most veterans and their families fit into one (or more) of the basic four categories:· Reduce monthly payments Consolidate outstanding debt, such as refinancing a first and second mortgage. Tap into built-up equity in the home. Some just want to get out of a mortgage product they don’t like, or that’s costing too much. Going from an ARM to a fixed rate mortgage, for example “If you want to refinance your existing loan with a new lender to take advantage of your military benefit, we can do that, too,” says Guthrie. “Before you commit to the refinance application process, sit down with one of Military Mortgage Shop’s loan specialists to identify if August is the right time for you: Timing is everything — In the simplest terms, determine how long you plan on holding on to this mortgage. If you have a product like a balloon mortgage, your deadline is when the balloon period ends. If you don’t have to refinance, your time frame can be as long as you plan to live in the home What About Cash-Out Refinancing using a VA home loan? If you’re looking to tap into your equity, known as a cash-out refinance, your home’s appraised value will dictate everything.  Currently, most lenders will allow up to 90% of your homes appraised value. What about Closing Costs? The VA loan program is a great product to minimize closing costs.  Veterans are protected from any excessive fees.

VA guidelines restrict lenders from charging the “VA non-allowable fees,” ultimately lowering your cost to refinanceMortgage rates are still hovering just above their best levels of the year.