What Is An IRRRL? | VA Home Loans

IRRRL VA stands for Interest Rate Reduction Refinancing Loan. This loan is only applicable to veterans looking to refinance their current VA home loan for another VA home loan.

Qualified VA homeowners now have access to a simple refinance option with very minimal paperwork and cost to the borrower.

My husband and I recently met with a trusted Lender, Joel Kurata of Element Mortgage. Like many homeowners who are aware of the historic low interest rates currently available — we met with a lender to learn our refinance options. Needless to say, we were very happy to learn about the IRRRL VA program.

Why an Interest Rate Reduction Refinancing Loan?

Less paperwork, fewer closing costs, amazing interest rates.

  • No appraisal necessary, which means no appraisal fee
  • No money up front (or out of pocket). Lenders can include all closing costs into your new loan amount. This can be extremely beneficial to those active duty members who may be PCSing out relatively soon and looking to sell. Although the loan amount may increase, the monthly payment will decrease.
  • Less paperwork means there is no need to provide pay stubs, tax returns, bank statements.

My husband and I were pleasantly impressed by the amount of money we will be saving monthly and honestly shocked (in a good way). Of course, nothing in this world comes free. There are still some closing costs, and after all, the Lender and Title companies need to be paid for their hard work. Funding fees and escrow/title fees will vary. In our case, the amount is minimal compared to the amount we will be saving. As in, the amount we will be saving monthly will pay for these fees in a matter of months. Speak with your trusted Lender for more information.

PCSing Out Soon and Looking to Sell?

It may be a good time to consider the IRRRL. Save on your monthly mortgage payments without worrying about the increased loan amount.

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