It's an improvement over your old VA loan. With it, you get a lower, lower rate. The VA IRRRL is used to refinance one VA mortgage to another. With it, you get a lower rate, a lower payment, or both.
You can also upgrade from an adjustable-rate loan to a fixed-rate one. A VA IRRRL, also known as a VA Streamline, can help you refinance at a lower interest rate through the VA. Your new terms should provide you with an immediate financial benefit, such as a lower interest rate or a lower monthly payment. IRRRL stands for Interest Rate Refinancing Loan.
They may call it Streamline or VA to VA. These loans are usually used to lower the borrower's interest rate or to convert an adjustable-rate mortgage (ARM) into a fixed-rate mortgage. IRRRL stands for Interest Rate Refinancing Loan, also known as a simplified loan or a VA to VA loan. Like any mortgage refinance, the VA IRRRL program replaces your current mortgage with a new loan.
The new loan starts from scratch at 30 or 15 years, depending on the loan term you choose. The VA IRRRL program is also a useful way to move from an adjustable-rate mortgage to a fixed-rate mortgage. If all goes well, a VA IRRRL could close in less than a month, which is faster than most refinances. If you're having trouble meeting your monthly payments or if you need more time to pay your mortgage, it's a good idea to talk to a mortgage lending expert early to discuss the possibility of a VA IRRRL.
In addition, you can only apply for an IRRRL if you have already used your eligibility to apply for a VA loan on the same property you intend to refinance. You might even be surprised to learn that you can also get an IRRRL from the VA for a home you rent if you have proof that you ever lived in the house, although Rocket Mortgage doesn't offer Streamlines outside of the main home. And you don't need a new Certificate of Eligibility (COE), since the IRRRL can only be used on an existing VA loan. The IRRRL is also known as the simplification of the VA and is exactly that, a simplified process for refinancing your current mortgage.
So, depending on the lender you choose, you may or may not have access to the full suite of VA IRRRL benefits. The VA IRRRL is used to refinance one mortgage and convert it into another, to lower your current rate to a new lower rate and, in most cases, to pay off a lower monthly mortgage. An exception is the Energy Improvement Mortgage (EIM), which can be used in conjunction with any VA refinancing, including the IRRRL. The VA IRRRL allows veterans and service members to refinance their current mortgage loan at a lower rate and monthly payment.
The VA IRRRL is a benefit designed to help veteran homeowners reduce their interest rate quickly and in a simplified manner by reducing the amount of paperwork. To qualify for a VA IRRRL, you must have a current VA loan that has been open for at least 7 months (210 days).