Almost nobody markets it, so almost no veteran knows it exists. The Interest Rate Reduction Refinance Loan requires no appraisal in most cases, generally no income documentation, and no new certificate of eligibility. If you already have a VA loan, this is the first thing to look at.
You earned this benefit. Use it more than once. A VA loan is not a one-time thing, and the IRRRL exists specifically so you can lower your rate without starting over.
This is the benefit people underestimate. FHA carries mortgage insurance for the life of the loan and conventional carries PMI until 20% equity. VA has neither. On a refinance out of FHA, that alone can be the whole saving.
VA charges a one-time funding fee, usually financed into the loan rather than paid at closing. It is reduced on an IRRRL. It is waived entirely for veterans with a service-connected disability rating, which is worth confirming before anyone quotes you.
A VA loan is not once per lifetime. Entitlement can be restored and in some situations you can hold more than one VA loan at a time. If someone told you that you already used it up, get a second opinion.
VA borrowers are targeted with aggressive mailers and call-center offers more than any other group. The advertised rate is one line on a page with thirty. Read what to watch for, and send me the Loan Estimate before you sign anything.
Tell me your current rate, your balance and whether you have a disability rating. Those three things determine whether an IRRRL saves you money, and the disability rating in particular changes the math because it waives the funding fee. If the honest answer is that the savings do not justify the cost right now, I will tell you. Already have a VA refinance offer in hand? Send it for a free LE Review and I will show you line by line how mine compares. Also see VA purchase loans.
Program details are general, vary by loan, property and borrower eligibility, and are subject to change without notice. This is not a commitment to lend and not all applicants will qualify. This page is not endorsed by or affiliated with the Department of Veterans Affairs or any government agency.
