The IRRRL is basically just another way to say VA Streamline Refinance. If you have already read about the VA Streamline Refinance Program than you already know what we are referring to. If not here is a little recap on the IRRRl Loan. First IRRRl stands for, Interest Rate Reduction Refinance Loan. This type of loan lets you refinance your current mortgage interest rate so you can lower the rate that you are currently paying. This program is very popular because it is so easy to use. After the approval of the Va loan, it is so simple to lower your interest rate to save a lot of money.
VA lenders are government approved so once you find a certified VA lender your loan should be done within a month in certain instances.
When your Va loan is closed there are a few different costs to be aware of. Luckily the closing costs are combined with the cost of the loan. This combination allows people with a VA loab to refinance with no out of pocket fees. Talk with your lender to see if they can cover the extra costs for you in exchange for a little higher interest rate if you are interested.
There are a few requirements that you must meet in order to get an IRRRL.
- You must use the VA loan/ IRRRL on a property you intend to refinance.
- You have to be current on all of your mortgage payments. You may only have one 30-day late payment within the last year as well.
- Your monthly IRRRL payments has to be lower than your previous loan’s monthly payment.
- This does not apply if you refinance an ARM to a fixed rate mortgage.
- You can not receive any cash from the IRRRl.
- You must prove that you occupied the property.