It's an improvement over your old VA loan. With it, you get a lower, lower rate. The VA IRRRL is used to refinance one VA mortgage to another. With it, you get a lower rate, a lower payment, or both.
You can also upgrade from an adjustable-rate loan to a fixed-rate one. A VA IRRRL, also known as a VA Streamline, can help you refinance at a lower interest rate through the VA. Your new terms should provide you with an immediate financial benefit, such as a lower interest rate or a lower monthly payment. IRRRL stands for Interest Rate Refinancing Loan.
They may call it Streamline or VA to VA. These loans are usually used to lower the borrower's interest rate or to convert an adjustable-rate mortgage (ARM) into a fixed-rate mortgage. IRRRL stands for Interest Rate Refinancing Loan, also known as a simplified loan or a VA to VA loan. The VA IRRRL is a mortgage refinance option for veterans with an existing VA loan.
The IRRRL allows homeowners to refinance an existing VA loan into a new one with a lower interest rate or convert a VA loan from a VA loan from an adjustable-rate loan to a fixed-rate loan. You might even be surprised to learn that you can also get an IRRRL from the VA for a home you rent if you have proof that you ever lived in the house, although Rocket Mortgage doesn't offer Streamlines outside of the main home. If you're having trouble meeting your monthly payments or if you need more time to pay your mortgage, it's a good idea to talk to a mortgage lending expert early to discuss the possibility of a VA IRRRL. The IRRRL is also known as the simplification of the VA and is exactly that, a simplified process for refinancing your current mortgage.
The VA IRRRL is used to refinance one mortgage and convert it into another, to lower your current rate to a new lower rate and, in most cases, to pay off a lower monthly mortgage. An exception is the Energy Improvement Mortgage (EIM), which can be used in conjunction with any VA refinancing, including the IRRRL. For an existing VA loan to qualify for an IRRRL, an adjustment period of 210 days is required starting from the date of the first payment or after the sixth monthly payment (whichever is longer). The IRRRL program offers current veteran homeowners an excellent opportunity to take advantage of low mortgage rates with the support of the VA.
Another important note from the IRRRL is that simplified VA refinancing only requires prior occupancy of the home. The VA IRRRL is a benefit designed to help veteran homeowners reduce their interest rate quickly and in a simplified manner by reducing the amount of paperwork. The VA IRRRL program is also a useful way to move from an adjustable-rate mortgage to a fixed-rate mortgage. In addition, you can only apply for an IRRRL if you have already used your eligibility to apply for a VA loan on the same property you intend to refinance.
