VA Cash-out Refinance Loan Comparison and Certification

VA Guaranteed Home Loan Cash-Out Refinance Comparison Certification

PROPOSED REFINANCE LOAN Sections I through III should be completed within 3 business days of the loan application. Please note that the information provided in these sections represent an estimate of the refinance loan and its impact.
Section I – PROPOSED REFINANCE LOAN COMPARISON (This section to be completed by the Lender. Please refer to instructions for more information.)
Loan Application Date: _________________________
				EXISTING LOAN	PROPOSED LOAN		ESTIMATED IMPACT OF REFINANCE
VA Loan Number (LIN)				____________	____________
Loan Balance				$____________	$____________		$____________
Monthly Payment				$____________	$____________		$____________
Remaining Term (months)				___________	___________		___________
Loan Type				___________	___________		N/A
Interest Rate				________%	________%		________%
Total of the Remaining Scheduled Payments				$____________	$____________		$____________
Loan-to-Value Percentage				________%	________%		________%
Home Equity Remaining				$____________	$____________		$____________
Section II – NET TANGIBLE BENEFIT FOR PROPOSED REFINANCE LOAN (This section to be completed by the Lender. Please refer to instructions for more information.)
To the best of my knowledge, I, ___[insert Lender name]____, have determined that the proposed refinance loan outlined in Section I meets the following net tangible benefits (check all that apply): The new loan eliminates monthly mortgage insurance, whether public or private, or monthly guaranty insurance The term of the new loan is shorter than the term of the loan being refinanced The interest rate on the new loan is lower than the interest rate on the loan being refinanced The payment on the new loan is lower than the payment on the loan being refinanced The new loan results in an increase in the borrower’s monthly residual income as explained by 38 CFR 36.4340(e) The new loan refinances an interim loan to construct, alter, or repair the primary home The new loan amount is equal to or less than 90 percent of the reasonable value of the home The new loan refinances an adjustable rate mortgage to a fixed rate loan
Section III – BORROWER CERTIFICATION FOR PROPOSED REFINANCE LOAN
I/We hereby certify that I/we understand the estimated effect the proposed refinancing has on my loan balance, payments, interest rate, term, total payback of payments, and remaining equity in my home should I/we accept a refinance loan.
Borrower ____________________________________________________							Date:
Co-Borrower _________________________________________________							Date:
FINAL REFINANCE LOAN Sections IV through VII should be completed at or before the closing of the refinance loan.
Section IV – FINAL REFINANCE LOAN COMPARISON (This section to be completed by the Lender. Please refer to instructions for more information.)
				EXISTING LOAN	NEW LOAN		IMPACT OF REFINANCE
VA Loan Number (LIN)				____________	____________
Loan Balance				$____________	$____________		$____________
Monthly Payment				$____________	$____________		$____________
Remaining Term (months)				___________	___________		___________
Loan Type				___________	___________		N/A
Interest Rate				________%	________%		________%
Total of the Remaining Scheduled Payments				$____________	$____________		$____________
Loan-to-Value Percentage				________%	________%		________%
Home Equity Remaining				$____________	$____________		$____________
Section V – REFINANCE CLOSING SUMMARY (This section to be completed by the Lender. Please refer to instructions for more information.)
Amount of Cash Directly Disbursed to Borrower(s):						$_______________
Payoffs Disbursed, Excluding Mortgages, on Behalf of Borrower(s):						$_______________
Amount of Increase in Total Paid Over Life of Loan:						$_______________
Section VI – NET TANGIBLE BENEFIT FOR FINAL REFINANCE LOAN (This section to be completed by the Lender. Please refer to instructions for more information.)
I, ___[insert Lender name]____, have determined that the new refinance loan outlined in Section IV meets the following net tangible benefits (check all that apply): The new loan eliminates monthly mortgage insurance, whether public or private, or monthly guaranty insurance The term of the new loan is shorter than the term of the loan being refinanced The interest rate on the new loan is lower than the interest rate on the loan being refinanced The payment on the new loan is lower than the payment on the loan being refinanced The new loan results in an increase in the borrower’s monthly residual income as explained by 38 CFR 36.4340(e) The new loan refinances an interim loan to construct, alter, or repair the primary home The new loan amount is equal to or less than 90 percent of the reasonable value of the home The new loan refinances an adjustable rate mortgage to a fixed rate loan
Section VII – BORROWER CERTIFICATION FOR FINAL REFINANCE LOAN
I/We hereby certify that I/we understand the effect refinancing has on my loan balance, payments, interest rate, term, total payback of payments, and remaining equity in my home should I/we accept a refinance loan.
Borrower ____________________________________________________							Date:
Co-Borrower _________________________________________________							Date: