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. 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.
VA IRRRLs offer borrowers the opportunity to refinance their current loan to lower their interest rate or stabilize their monthly mortgage payments. An exception is the Energy Improvement Mortgage (EIM), which can be used in conjunction with any VA refinancing, including the IRRRL. 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). 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. Simplified VA refinancing (VA IRRRL) is a mortgage refinancing option for veterans and active duty service members with a current loan backed by the Department of Veterans Affairs, also called a VA mortgage loan.