IRRRL Rates: VA Loan Refinance Rate Information
Updated January 2018
Also known as the VA Streamline Refinance, the Interest Rate Reduction Refinance Loan (IRRRL) program by the US Department of Veterans Affairs is a great refinancing option for homeowners who currently hold a VA loan.
Its primary aim is to help VA homeowners lower their current mortgage rates and obtain a more affordable payment term. Keep in mind that IRRRL rates and guidelines will vary by lender, so it is important to do your research before you choose a lender.
Exclusive for VA Homeowners
Besides having one of the best home loan option existent today, military service members both retired and on active duty also have exclusive access to perhaps one of the best refinancing program in the market. There are various reasons why a homeowner decides to refinance. It could be to take out equity and increase one’s cash flow or use the proceeds of the loan to fund some emergency expenses or home improvements. However, a homeowner will not receive cash from an IRRRL.
Commitment to Service
Apply now for a VA IRRRL Loan
Popular VA IRRRL Information
Some of the more popular topics related to the IRRRL program include:
IRRRL Refinancing: Quick Facts About the Interest Rate Reduction Refinance Loan Program
- The IRRRL is a simple process compared to the original VA mortgage loan. Most of the time, the lender is able to close automatically.
- The VA does not require an appraisal, credit information, or underwriting, but your VA approved lender may require these.
- You can roll all closing costs and fees into the new loan so there are no out-of-pocket charges to you.
- The monthly payment for the IRRRL must be lower than the previous loan’s monthly payment unless you are refinancing an adjustable rate mortgage or the new loan term is less than the old one.
- The IRRRL must be at a lower interest rate than the previous loan. The exception is if you are refinancing from an adjustable rate loan. The reason you might want a higher, fixed rate loan is that your adjustable rate loan’s interest rate will eventually increase.
- An IRRRL can be applied to a fixed rate or adjustable rate loan.
- Energy efficient improvements can be refinanced into your IRRRL, up to $6,000.
- Your monthly mortgage payment may increase if you finance energy efficient home improvements, finance your closing costs including the funding fees, finance points, or get a higher interest rate if you move to a fixed rate loan.
- You cannot receive any cash out at closing with an IRRRL.
- You must be current on your existing VA mortgage and not have had more than one 30-day late mortgage payment within the past 12 months.
VA IRRRL Lenders: What You Want To Know
When it comes to finding the “right” VA refinance lender, the first thing to know is that not every VA approved lender has the same guidelines for the IRRRL program. Each lender may have different requirements regarding credit scores, appraisals or other aspects of the loan process. Because of this, it is important that you speak with multiple VA approved lenders who can help get you a written rate quote so that you can lay them all out and compare. You want to be sure that you pick the right lender for your particular situation – and you might also be surprised to learn how much money you can probably save just by shopping a few lenders.
IRRRL Rates: What are the VA refinance rates today?
Because IRRRL rates change multiple times each day and can vary widely from one lender to another, the most accurate way to determine rates is to get a personalized quote from a VA-approved lender. To get started, just fill out your contact information below – it only takes a minute.
IRRRL Rates: Shop Around
IRRRL rate quotes should be free from VA lenders and after getting your information, they will provide you with a Good Faith Estimate of what exactly your IRRRL rate would be if you were to get an IRRRL loan done right then.
- Get a referral from somebody you trust. Contact the lender and discuss your loan options with them. Ask the lender to compare conventional, FHA, USDA, VA, and other loan options you may qualify for. Use this information as your baseline before contacting other lenders.
- Make sure your credit score is at its best. Check your record for any inconsistencies. Report any errors found and let the appropriate entities know that you are disputing an error.
- At least know how long you plan to keep the loan.
- A single quote from one lender isn’t enough. Shop around.
- If possible, make a larger down payment.
- Know exactly what you want and how much you are willing to put forward. Are you buying a condo or a single-family home? How much are you willing to pay for down payment? Are you purchasing or refinancing? Are you willing to pay for mortgage insurance?
- Ask lenders about closing fees.
- Ask the lenders if there programs have attached prepayment penalties.
- When comparing lender quotes, you must call or contact them within short intervals as rates fluctuate frequently.
- Ask how long it would take to close the loan.
- Decide if you want to pay for points.