Refinancing A VA Loan. What is an IRRRL?

By
Mortgage and Lending with PrimeLending, A PlainsCapital Company

So what is a IRRRL? It's the term used to refinance a VA Loan to lower the interest rate or switch from an Adjustable Rate Loan to a Fixed Rate Loan. IRRRL is short for Interest Rate Reduction Refinancing Loan.

VA does not require that an appraisal be or credit information be completed. But in today's economy with house values having dropped in many parts of the country and many people struggling the lender may require both an appraisal and credit check be completed.

The IRRRL must always be a fixed rate loan. It can be for a 30 or 15 year term. The payment on the new loan must be less than the current payment unless the loan is being refinanced from an ARM to a fixed rate or the new loan term has shorter term than the current loan.

You may choose any lender that handles VA Loans to assist you with your IRRRL. There is no requirement that you go with the lender collecting your payments or the lender that originally did your loan.

Since you already have a VA Loan no Certificate of Eligibility is required.

The IRRRL loan can include the existing loan balance, allowable fees and charges, up to $6,000 of energy efficiency improvements and the VA Funding Fee (May be waived in some ciricumstances.)

For more information on VA Loans go to: www.DCMilitaryVALoans.com


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My direct line is 240.813.0614. So let me hear from you! Remember...it doesn't cost a penny to talk...so call right now and I will answer all your questions.


Alan Gross

Senior Mortgage Consultant

PrimeLending, A PlainsCapital Company
704 Quince Orchard Rd., Suite 230
Gaithersburg, MD 20878
Home Office: 240.813.0614
Email: agross@primelending.com
Web: www.mtg-info.net
Web: www.DCMilitaryVALoans.com
NMLS#217388

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Ambassador
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Margaret Woda
Long & Foster Real Estate, Inc., Crofton, MD 21114 - Crofton, MD
Maryland Real Estate & Military Relocation

Alan, I'd love to re-blog this on my FocusOnCrofton.com blog, if that's okay with you.  Your post proves that it's very easy to do. But...

I'm probably not the only one with this question: Why refinance my 6.5% loan with only about 15 years remaining, when a new loan at 4.5% for the remaining balance over 15 years has payments that are just about the same?  

 

Aug 11, 2011 09:06 AM #1
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Debb Janes
The Carl Group, LLC - Camas, WA
REALTORĀ®, EcoBroker Camas, Washington

Good information Alan, and I guess I have the same question as Margaret. Would there be a benefit in that scenario? I figure in every refi situation, you have to look at specifics to see if would be a benefit and worth the actual cost of the new loan.

Aug 13, 2011 11:23 AM #2
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