I want to refinance my VA loan to receive a lower monthly payment.
VA Interest Rate Reduction Refinance (IRRRL)
The VA Interest Rate Reduction Refinance Loan (IRRRL) is designed to help veterans and active-duty military members lower their monthly mortgage payments by refinancing an existing VA loan. The IRRRL allows borrowers to take advantage of lower interest rates without having to go through the process of getting a new appraisal or credit check. This means that the loan process is often quicker and less complicated than a traditional refinance.
What are the biggest benefits of a VA Interest Rate Reduction Refinance?
- Lower monthly mortgage payments
- No appraisal or credit check required
- Potentially quicker and less complicated loan process
- No money down required
- Possible lower interest rate
- May be able to switch from an adjustable-rate mortgage to a fixed-rate mortgage
- May be able to shorten or extend the loan term to better fit your needs
- No penalty for paying off the loan early
Qualifications for a VA Interest Rate Reduction Refinance
- You must currently have a VA loan
- You must be current on your mortgage payments with no more than one 30-day late payment in the past year
- You must occupy the property as your primary residence
- The new IRRRL loan must result in a lower monthly principal and interest payment, unless you are refinancing from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage
- You must have sufficient remaining entitlement to cover the IRRRL loan amount, or be willing to make a down payment if necessary