What is a VA Interest Rate Reduction Refinancing Loan (IRRRL)?
If you are looking to lower your interest rate and your monthly mortgage payment, you may want to consider an IRRRL. 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. Below are some benefits and helpful tips when considering an IRRRL. No appraisal or credit underwriting package is required by VA. 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. (Remember: The interest rate on the new loan must be lower than the rate on the old loan unless you refinance an ARM to a fixed rate mortgage). You cannot receive any cash from the loan proceeds. It must be a VA to VA refinance, and it w
