A Guide To Interest Rate Reduction Refinance Loans (IRRRLs)February 20, 2023 by X2 Mortgage
Are you paying on a VA mortgage? If you are looking to refinance that home loan to another VA mortgage, you can apply for a VA Interest Rate Reduction Refinance Loan, or “IRRRL” for short.
What is an Interest Rate Reduction Refinance Loans (IRRRL)?
VA loans generally have very competitive rates and terms. But a time might come when your existing VA loan is no longer your most affordable or flexible option. Say, for example, your credit score has gone up, or interest rates have gone down. Refinancing to a new VA loan with an IRRRL may help you save money.
Note that IRRRLs are only for refinancing from an old VA loan to a new VA loan, not from or to other types of mortgages.
Another name for an IRRRL is a “streamline” refinance. This is due to how fast and straightforward this type of refinance can be.
Benefits of an VA IRRRL
- Potentially reduce your interest rate or make other adjustments to your home loan that make it more competitive than your existing loan.
- In most scenarios, you will not require an appraisal.
- Out-of-pocket costs are minimal. You have the option of rolling your closing costs into the balance of the mortgage.
- VA streamline loans generally do not require as much documentation as typical mortgage refinances.
Are You Eligible for a VA Streamline Refinance?
You may qualify for a VA IRRRL if:
- You currently have a VA mortgage.
- You want to refinance to another VA mortgage.
- You currently or previously lived in the home for which you are refinancing the mortgage.
We Keep the IRRRL Application Process Simple
Even though IRRRLs are part of your VA loan benefits, you go through a private mortgage company for your refinance, not the VA itself.
When you apply, you will need your Certificate of Eligibility (COE). You might still have this from when you applied for your existing VA loan. If you do, you can bring it when you apply.
Don’t have your COE anymore? That is not a problem. We can obtain it on your behalf through the VA’s portal for the mortgage program.
Tell us about what you want to accomplish with your refinance, and we will find you suitable rates and terms for your new VA loan.
Apply for an IRRRL Today
It is time for you to have the VA home loan that best serves your needs. If you are ready to refinance, please call us today at (480) 992-4200 to schedule your consultation. Based in Chandler, Arizona we work with veteran homeowners across numerous states.