A VA IRRRL (Interest Rate Reduction Refinance Loan) is a type of mortgage refinance loan available to eligible veterans and active-duty military personnel who have an existing VA loan.
Here’s how it works:
- Eligibility: The borrower must already have a VA loan, and the loan being refinanced must be current (i.e., no late payments in the past 12 months).
- Qualification: The borrower must be able to show that they can afford the new loan payments, which must be lower than the current payments, unless the borrower is refinancing from an adjustable-rate mortgage to a fixed-rate mortgage.
- Streamlined process: VA IRRRLs are streamlined refinances, which means they require less paperwork and documentation than a traditional refinance. This can make the process faster and easier for borrowers.
- Lower interest rate: The purpose of a VA IRRRL is to lower the interest rate on the existing VA loan. This can result in lower monthly payments, which can save borrowers money over the life of the loan.
- Fees: There are typically fees associated with a VA IRRRL, but these fees can be rolled into the new loan, so borrowers don’t have to pay them upfront.
- No cash-out: VA IRRRLs are not designed to provide cash-out to borrowers. The new loan amount can only be enough to pay off the existing VA loan and any associated costs.
Overall, a VA IRRRL can be a good option for eligible veterans and active-duty military personnel who want to lower their monthly mortgage payments by refinancing their existing VA loan.Verify your mortgage eligibility (Sep 28th, 2023)
If you are considering a VA IRRRL in Washington State we can provide a no obligation quote with our low rate, low fee VA IRRRL option. Our direct phone number is 253-472-1500 evenings and weekends OK (text as well).
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