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VA Streamline IRRRL Refinancing

If you currently have a VA Loan and would like to refinance, your best option is to do so with VA Streamline Refinancing, otherwise known as the Interest Rate Reduction Refinance Loan (IRRRL). Refinancing with the IRRRL, is quick and easy if you are an existing VA Loan borrower, since you are going from one VA program to another, and you will receive lower monthly payments.

There are only two conditions outside of the military requirements:

  • The borrower will need to certify that they either previously or currently occupy the house
  • The borrower may not obtain any cash back as a result of the IRRRL

Some benefits of the IRRRL are:

  • You will need little to no money out-of-pocket
  • In some instances, you won’t need another appraisal completed
  • No need to acquire another Certificate of Eligibility (COE)

Instead of handing over cash during the refinancing process, you have the option to include the fees and closing costs in with the new refinanced loan.

What does a reduced interest rate look like for you?

Interest rates are currently low, and you could possibly save tens of thousands of dollars over the life of your loan by receiving even a half of a percentage reduction to your interest rate.

Here are a few examples of how that could look. Please keep in mind though, the following chart is for demonstration purposes only. Several factors go into the cost of a mortgage. To get an accurate look at what your specific situation could look like, ask your loan specialist.

Interest Rate Reduction Amount Saved with 30 Year Term
150K 0.5% Interest Reduction $19,033.75
150K 1% lower Reduction $32,696.48
250K 0.5% lower Reduction $31,254.16
250K 1% lower Reduction $54,494.12
350K 0.5% lower Reduction $43,755.83
350K 1% lower Reduction $76,291.77
450K 0.5% lower Reduction $56,257.50
450K 1% lower Reduction $98,089.43

To summarize, here’s what you need to know about the VA Streamline Refinancing, or the IRRRL:

  • Any fees and closing costs may be included in the new refinanced loan
  • Borrower has to be current on their current mortgage
  • Within the last year, borrower cannot have more than one 30-day late payment
  • Processes is quick and easy, especially compared to the original VA Loan process
  • You may refinance loan at an adjustable or fixed interest rate
  • Your new monthly payment with the IRRRL has to be lower than your previous monthly payment unless you have an adjustable interest rate

Additional benefits include:

  • There may be no costs out-of-pocket
  • In most cases, you don’t need another appraisal completed
  • You will not be required to obtain another Certificate of Eligibility (COE)

Contact one of the loan specialists in our network today to learn how your specific situation works with VA Streamline Refinancing.

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