VA Streamline (IRRRL) Refinancing
The Streamline refinance, or Interest Rate Reduction Refinance Loan (IRRRL), is one of the best options for homeowners who already have a VA Loan and would like to refinance into a lower monthly mortgage rate.
This refinance type is relatively easy and can be completed quickly, due to the fact that homeowners are refinancing from one VA Loan product to another. With this type of refinance, there are several prominent advantages, including no required appraisal in some cases, no need to obtain another Certificate of Eligibility and little to no out-of-pocket costs.
To avoid out-of-pocket costs, homeowners can choose to roll the closing costs and fees into the balance of the loan.
There are only a few requirements and stipulations. Primarily, the borrower is not allowed to receive any cash back from the IRRRL and the borrower must also certify that he or she currently or has previously occupied the property.
Save with Lower Rates
Today's interest rates are at competitive levels, and with a reduction of just a half of a percent, a borrower could potentially generate tens of thousands in savings over the life of a loan:
Amount Paid In Interest Total Savings over 30 years
150K 0.5% lower interest $19,033.75
150K 1% lower interest $32,696.48
250K 0.5% lower interest $31,254.16
250K 1% lower interest $54,494.12
350K 0.5% lower interest $43,755.83
350K 1% lower interest $76,291.77
450K 0.5% lower interest $56,257.50
450K 1% lower interest $98,089.43
Savings and interest rates shown here are for illustrative purposes only and may vary based on a variety of factors. All loans require approval and proof of eligibility and are subject to the complete terms and conditions outlined in the loan agreement documents.
The Streamline refinance is a simple process compared to originating the first VA mortgage.
Closing costs and fees can be rolled into the new loan, meaning no out-of-pocket expenses.
The IRRRL, or Streamline program, allows you to refinance into a fixed rate or adjustable rate loan.
Your monthly payment for the IRRRL must be lower than the previous loan's monthly payment; the Streamline payment may be higher than your current payment if you are refinancing into an adjustable rate mortgage
You must be current on your mortgage with no more than one 30-day late payment within the past year.
Getting started on a Streamline refinance is easy and the whole process can be completed in a surprisingly short amount of time.
NO re-appraisal needed in most instances
NO new Certificate of Eligibility required
NO requirement for out-of-pocket costs