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 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.