In today’s market of wildly low rates a VA Interest Rate Reduction Refinance Loan (IRRRL) can be an amazing tool for you to lower your rate and save some money.
Also known as a VA Streamline Refinance, the VA IRRRL can be used to help borrowers with a VA loan lower their monthly payments, change to a fixed rate mortgage, drop their interest rate and more.
Refinancing through a VA IRRRL can possibly save a borrower thousands of dollars over the course of the loan so they are worth looking into.
Here are a few benefits of the VA IRRRL:
- Closing costs and fees can be rolled into the new loan via the rate or increasing the loan amount
- There is no need to request another Certificate of Eligibility (COE)
- They can often be done in less than a month with little paperwork
- In some cases, there is no appraisal or minimum credit score required
- Borrowers only have to show they have lived in the home being refinanced
While a VA IRRRL is a very straightforward process, there are still some guidelines and requirements that have to be met.
- Cannot be used for a cash-out refinance
- Can only be used on a current VA loan
- Still need to pay closing costs and the VA funding fee (if you are not exempt)
On top of those rules each lender may have their own set of guidelines as well so be sure to check with each lender to see if you qualify.
For additional information please refer to the Department of Veterans Affairs website about VA IRRRLs.