Why Would I Want to Refinance My VA Home Loan With a VA IRRRL?

Have you ever heard the term “leaving money on the table?” You wouldn’t leave your winnings on the card table after a winning hand. Why leave money behind when you can have more cash every month for your home, family, savings or investments? If you’ve got an older VA loan with a higher interest rate, this is where the VA Interest Rate Reduction Refinance Loan (IRRRL) comes in.

What kinds of benefits can the VA IRRRL provide?

You can lower your monthly mortgage payments, or make variable payments into one steady, fixed payment for the entire life of your VA loan. You could save thousands of dollars over the life of your loan by refinancing to a lower interest rate.

You can get a VA IRRRL, also called a “streamline VA loan,” with no out of pocket money. You can include all your costs in the new loan. Your VA funding fee can be included in the loan or paid in cash.
You can’t receive any cash out from the IRRRL, but you may be able to include payments for energy efficiency improvements up to $6,000.

You can also reduce the term of your loan from a 30 year VA mortgage to a 15 year VA mortgage. While your payments will go up, the total amount of interest you will be asked to pay will be reduced. Go with a VA IRRRL lender who’ll help you work through all the comparisons of how much money you’ll save on a monthly and annual basis. Your VA refinance loan expert will show you how much you could save over the entire course of the loan.

What situations are ideal for a VA IRRRL?

If you’ve got an older, higher-rate VA home mortgage loan, there’s no reason not to take advantage of favorable interest rates. Choose a 30-year VA mortgage loan at a new, lower interest rate and lower your monthly payments. Or, select a 15-year VA mortgage loan and pay much less interest over the entire course of the loan.

If you can improve upon your current VA home loan mortgage interest rate by at least 0.5%, yes half a percent, it’s worth your time to consult with a CVLS – Certified Veteran Loan Specialist, such as California Platinum Loans to find out what your financial options are for a VA IRRRL “Streamline” mortgage refinance loan. With multiple borrowers on the loan we can still do the refinance if at least one of the borrowers is still working, even if the actual VET is now out of work or looking for a new job. It’s very easy to get refinanced when not pulling any cash out. The debt to income is usually not a concern to the lenders doing this. Since the main goal is to save the veteran money by lowering their interest rate and/or their monthly payments. So it’s very easy to get approved. Find out now how to qualify.

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