IRRRL
If you initially purchased your home using a VA loan, you have the option to utilize the Interest Rate Reduction Refinance Loan (IRRRL) to achieve various financial benefits. This loan enables you to lower your monthly payment, reduce your interest rate, or transition from an adjustable rate to a fixed rate loan. The IRRRL is commonly known as a "streamline" loan because the underwriters at your lender can leverage the paperwork from your original VA loan, including your credit report, appraisal, and asset statements. This streamlined process simplifies the refinancing procedure for VA loan borrowers.
Why an IRRRL Loan?
Better Interest Rate
By opting for an IRRRL (Interest Rate Reduction Refinance Loan), you can benefit from reduced interest rates. Through this refinancing option, your existing loan is replaced with a new mortgage loan, ensuring that you secure the lowest available interest rate.
Low or No Upfront Cost
When considering an IRRRL, it's important to note that another appraisal is not required, and instead, a mortgage-only credit report is obtained. This streamlined approach not only accelerates the refinance process but also reduces costs. In fact, you may be eligible to complete the refinance without any out-of-pocket expenses.
Lower Monthly Payments
Since you are essentially restarting your mortgage, opting for an IRRRL may extend the overall duration of your loan term. However, this extension allows you to enjoy reduced monthly payments.
Veterans Only
The IRRRL is a refinancing option supported by the Department of Veterans Affairs, specifically designed to refinance an existing VA loan. To qualify for an IRRRL, it is required that either a Veteran, their spouse, or their child reside in the home that is being refinanced. This loan program aims to provide beneficial refinancing options to eligible individuals and ensure the continued occupancy of the property by the Veteran or their family members.
Steps to an IRRL Loan:
01 Get Pre-Approved.
Our online application can help you receive your pre-approval letter quickly. Plus, you can upload all required documents straight into the app to save you time and energy.