Mortgage Article

A VA IRRRL (Interest Rate Reduction Refinance Loan), also known as a VA Streamline Refinance, is a refinancing option available to veterans with an existing VA loan. Here are some key points about it:

1. Purpose:

The main goal of a VA IRRRL is to reduce your monthly mortgage payments by securing a lower interest rate or to make your payments more stable by switching from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.

2. Simplified Process:

The IRRRL process is streamlined, meaning it generally requires less paperwork and can be completed more quickly than a traditional refinance. This is because you are refinancing from one VA loan to another.

3. No Appraisal or Income Verification:

Typically, you do not need to get a new appraisal or provide income verification, which can save time and reduce costs.

4. Eligibility:

To qualify, you must already have a VA-backed home loan and use the IRRRL to refinance that existing loan. You also need to certify that you currently live in or used to live in the home covered by the loan.

5. Costs:

While the process is simplified, there are still closing costs involved. However, these can often be rolled into the new loan amount to avoid out-of-pocket expenses.