VA Interest Rate Reduction Refinance Loan
The Interest Rate Reduction Loan (IRRL) program allows qualified veterans to refinance from an existing VA mortgage to a new VA loan with a more favorable interest rate. Those in a fixed-rate loan must refinance to a lower rate to utilize this loan program. Veterans who currently have VA adjustable rate loans may switch to a higher interest rate, but the rate must be fixed.
The IRRL does not allow borrowers to take out any cash during the refinance process, nor can the loan be used to pay off any mortgage other than the original VA home loan. In addition, the funding fee is only .5% vs. 3.3% for any other subsequent use of one’s VA entitlement.
If your current VA loan has a high interest rate or you want the security that comes from a fixed-rate mortgage, the IRRRL program may be right for you. We update our VA loan rates daily, so contact a VA home loan specialist to start your refinance application and see how much you can save today!