Interest Rate Reduction Refinance Loan (IRRRL): Everything you need to know
There are so many advantages of having a VA loan, but are you familiar with an IRRRL? It might just look like a bunch of letters you would find in a game of Scrabble, but it's actually one of the most valuable benefits available to veterans.
Also referred as a "Streamline Refinance," an Interest Rate Reduction Refinance Loan (IRRRL) is used by VA borrowers across the country to reduce their interest rate or convert their adjustable rate to a fixed-rate mortgage.
If interest rates have dropped since you received your original VA loan or you want to reduce your monthly payments, an IRRRL might be right for you.
Here's some of the reasons borrowers are taking advantage of this refinancing option:
- Lower monthly payment
- Lower interest rate means building equity in your home faster
- No income qualifications
- No appraisal needed
- Refund current escrow balance
- Streamlined process
- More money in your pocket every month
NOTE: According to VA guidelines, you cannot refinance your loan until at least 210 days AFTER the first scheduled payment on the original loan.
Guaranteed Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency.