VA Refinance Can Lower Your Mortgage Interest Rate and Payment

VA Refinance IRRRL

The Department of Veteran Affairs offers a streamlined VA refinance to benefit borrowers with VA loans.   This refinance loan is called a VA Interest Rate Reduction Refinance Loan.  But, IRRRL, pronounced like Earl, is what lenders call it.  A VA IRRRL helps a Veteran refinance a current VA loan into a lower interest rate and payment.  Plus it is an easy and quick process.  Additionally this product allows a refinance from an Adjustable Rate Mortgage (ARM) to a fixed rate.

So with today’s low rate environment, it is a perfect time to lower your VA mortgage rate and payment.   Therefore it is best to call now to see if a refinance makes sense before rates rise!VA refinance IRRRL to lower your interest rate and payment

VA Refinance IRRRL Details & Eligibility:

  • No appraisal is required
  • All closing costs may be included in the new loan
  • Borrowers usually have the option of a no closing cost loan
  • The process is very simple and easy to close for borrowers
  • Reduced VA funding fee.  The fee is only .50% of the loan amount, plus financed in the loan
  • Furthermore, you do not have to pay a VA funding fee (exempt) if
    • Veteran is receiving VA compensation for a service connected disability OR
    • Veteran who would be entitled to receive compensation for a service connected disability if you did not receive retirement or active duty pay OR
    • Surviving spouse of a Veteran who died in service or from a service connected disability
  • The borrower may not receive cash out from the refinance
  • Only the existing VA mortgage may be paid off & not other loans or mortgages
  • Allows for divorcees, widow, or remarrying Veterans to refinance
  •  Additionally, a VA IRRRL allows for rental properties too

VA Cash Out Refinance for Bill Consolidation or Improvements

Furthermore, A little known fact is that active military, Veterans, or qualifying surviving spouse may qualify for a cash out refinance.  So, VA cash out refinances can pay off any type of mortgage, loans or credit cards.  Plus, home improvements can even be financed.  Therefore, this is a great way to finance a bill consolidation or home improvements up to 100% of appraised value with no PMI.

In conclusion, whether you currently have a VA loan or not, a VA refinance is a great financing option.

Discounts for Disabled Veteran Homeowners in NC & SC.  See if you qualify

Written By: Russell Smith

Sign up to receive the latest in mortgage news.