First off if you are a U.S. Veteran that served this country I want to say “Thank You” I appreciate your dedication in protecting and serving this Country.
If you are a Veteran, with an existing VA Mortgage, you are entitled to refinance that property with a VA Streamline Refinance program, also known as an Interest Rate Reduction Refinancing Loan (IRRRL). This VA IRRL as we will call it from here on out in this blog allows you to lower the interest rate on your VA mortgage with few or no out-of-pocket costs.
It must be a VA to VA refinance, and it will reuse the VA Certificate of Eligibility.
The VA IRRL is the probably the best option for you if you want to refinance your existing loan with a lower interest rate and monthly payment. .
The biggest VA requirement for the VA IRRL is that you lower your current rate to a lower rate or converting an ARM to a fixed rate.
Benefits of a VA IRRL:
- You Will NOT need to provide bank statements, W2s or paycheck stubs
- You cannot receive any cash at closing
- Refinancing without an appraisal is possible
- You must be current on your existing VA mortgage and not have had ANY 30-day late(s) on your mortgage the last 12 months.
- An IRRRL can be a fixed rate loan or an adjustable rate loan.
- An IRRRL must be at a lower interest rate than your current mortgage loan unless you are refinancing from an adjustable rate mortgage loan.
- The VA has a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan.
Bonus of a VA IRRL:
- Within 30 days of closing, you will receive the money that was held in your old escrow account because a new escrow account will be set up with your new loan
No loan other than the existing VA loan may be paid from the proceeds of an IRRRL. If you have a second mortgage, the holder must agree to subordinate that lien so that your new VA loan will be a first mortgage.
A VA IRRL can be accomplished faster and with less documentation than a typical home refinance loan. Do you currently have a VA Loan? Do you want to reduce your monthly mortgage payment? What are you waiting for…? Contact Me and let’s get started with reducing your monthly debt by refinancing you in a VA IRRL.
Senior Loan Analyst
(816) 728-1384NMLS # 245378, Mo No. 10-1649-MLO, Ks No. 0009720 360 Mortgage Inc., 28 Westwoods Drive, Liberty, Mo 64068 NMLS # 80777