Using a 15-Year VA Cash-Out Refinance to Build Wealth

Published March 9, 2022

A 15-year VA cash-out refinance can help veterans build wealth. For example, if you own a home, the property is likely your largest financial asset. When this asset increases in value, your wealth increases as a result. But while your home might gain value on its own, you can also contribute to the process with strategic home improvement projects.

These projects often pay for themselves in the form of increased property value. Still, most homeowners have trouble sourcing the cash funds needed to pay for the improvements. That’s where refinancing your mortgage can make a difference. By obtaining a 15-year VA cash-out refinance, you can immediately access the funds you need for major home-related projects. In the long run, this financial tactic will increase the value of your property and help you acquire more wealth.

The basics of a 15-year VA cash-out refinance

A 15-year VA cash-out refinance is a financial maneuver that allows veterans to take out a new mortgage on their homes. If you’ve been paying a mortgage for years, then you’ve acquired considerable equity in the property. Now, you can leverage that equity to secure new financing terms. 

The new mortgage will replace your current financing deal. By securing more favorable terms, you’ll put yourself in a position to receive money to fund projects almost immediately. In addition, the difference between the old mortgage and the new one will be payable in cash, giving you the money you need to invest in your home and raise the value of your property.

How refinancing works with a VA loan

The VA provides especially favorable terms for veterans looking to refinance their mortgages. It is important to note that veterans can access the 15-year VA cash-out refinance option even if their current mortgage isn’t a VA loan. This widespread accessibility makes the financial maneuver an appealing choice for veterans in all sorts of economic situations. 

To take advantage of the 15-year VA cash-out refinance possibility, you’ll have to make sure that you qualify for a VA loan. Eligibility depends on several factors relating to the details of your military service. The 15-year refinance cash-out option also comes with specific financial requirements. In most cases, veterans need a decent credit score, stable income, a manageable debt-to-income ratio, and home equity to qualify for a 15-year VA cash-out refinance deal. 

Popular home improvement projects to increase your property’s value

There are all sorts of home improvement projects that will contribute to a boost in your property’s value. Of course, in most markets, any project that makes your home a nicer place to live will make it more valuable in the eyes of future buyers. However, specific projects are known for offering a substantial return on investment. 

Bathrooms and kitchens are important for many buyers, making them a central area of focus for people trying to increase the value of their homes. A simple remodeling of either of these spaces will make your home seem more comfortable and modern. Even minor projects, like replacing an old appliance, can go on to have a significant impact.

Additionally, don’t forget about revamping your home’s exterior alongside the interior rooms. The roof and walls protect the house’s structure from the elements, and they need to be in excellent condition for the property to look its best. Repainting and refinishing your home’s exterior will boost structural integrity while making the building look more attractive from the road. 

Building wealth as a U.S. veteran

Building wealth for veterans and everyone else in the modern world is the best way to acquire financial security. Life is expensive, and you never know when unexpected costs could come along. By increasing the value of your significant assets, you give yourself a cushion to soften the blows of potential future hardships. 

Financial uncertainty as a veteran is stressful regardless of your current security. But, if you can build up enough wealth to lighten these concerns, you’ll set yourself up for a brighter, happier future. Taking advantage of the 15-year VA cash-out refinance option can be the first step toward building the wealth you need to increase your quality of life.

Using real estate to build future wealth

Real estate is one of the best ways to build wealth throughout your lifetime. While there may be temporary market changes, property values generally increase with time. That means the property you currently own will likely be worth more in the future than it is now. In addition, you’re putting yourself in the position to increase your total wealth by just holding the property and slowly paying off the mortgage. You can also use additional strategies, like the 15-year VA cash-out refinance option, to access cash, invest in improvement projects, and further increase your financial security.

Some people use real estate investing as a long-term wealth-accruement strategy. If you have money set aside, you can buy additional property to add to your real estate portfolio. Then, whether you rent the space to a tenant or not, the rising value of the property will add to your overall wealth. 

When using real estate to build wealth, the key is not to overextend yourself. You don’t want to take on investments with financing packages that you won’t be able to afford. Only with prudence and wise decision-making can you expand your real estate holdings and safely grow your wealth. If you’re searching for the right mortgage refinance for your specific circumstances, talk with one of our agents. Our team of experienced professionals can make personalized suggestions and help guide you through the process. 

Considering a cash-out refinance

Securing your financial future requires thoughtfulness and a willingness to adopt new strategies. Obtaining a 15-year VA cash-out refinance can help you get the money you need to invest in your home. With the sudden influx of cash funding, a set of home improvement projects, your property’s value will quickly rise. In a world where financial security plays a significant role in well-being and personal happiness, don’t pass up an opportunity to build wealth and prepare for the future.