If you already have a VA-backed mortgage loan and want to reduce your monthly mortgage payments or make your payments more stable, a refinance loan with reduced interest rates (IRRRL) may be right for you. Refinancing allows you to replace your current loan with a new one under different conditions. Find out if you meet the requirements and how to apply. 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. And consider the VA funding fee, which costs 0.5% of the loan amount for a VA Streamline refinance, although your mortgage lender may allow you to include all of these costs in your loan balance.
Get the latest information on issues such as managing VA debt or paying your VA copayments or your VA-backed mortgage loan during this period. Another good candidate for VA Streamline refinancing is a current VA loan borrower with an adjustable-rate mortgage who wants to reapply for a fixed-rate mortgage. For an existing VA loan to qualify for an IRRRL, an adjustment period of 210 days is required starting from the date of the first payment or after the sixth monthly payment (whichever is longer). In addition to meeting the most basic eligibility requirements for VA loans, the rules for simplified VA refinancing are relatively lax.
In addition, there is no limit to the number of times a qualified borrower can use the VA's IRRRL program, so if rates drop even further in the coming years, you can always use this program again, Fagley explains. An exception is the Energy Improvement Mortgage (EIM), which can be used in conjunction with any VA refinancing, including the IRRRL. If you don't have a lot of equity in your home, a VA IRRRL is probably more realistic than a conventional or cash-out refinance. 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.
