If you are looking to lower your interest rate and your monthly mortgage payment on your VA mortgage, you may want to consider an IRRRL. IRRRL stands for Interest Rate Reduction Refinancing Loan. You may see it referred to as a “streamline” or a “VA to VA.” Completion of an IRRRL must result in a lower interest rate, except when refinancing an existing VA guaranteed adjustable rate mortgage (ARM) to a fixed rate mortgage. In this particular instance, the rate may increase.
● No appraisal or credit underwriting package is required by VA but we are required to do a credit check and run an automated valuation model report (AVM)
● A certificate of eligibility is not required
● An IRRRL may be done with “no money out of pocket” by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs
If you are looking to refinance a VA loan to either convert from an ARM to a fixed rate or lower your interest rate, a VA IRRRL or VA Streamline Refinance is a great choice.