VA's Interest Rate Reduction Refinance Loan

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If you have a VA loan and interest rates drop you can get always refinance your mortgage with what is known as a VA Interest Rate Reduction Refinance Loan (IRRRL).

The IRRRL is a pretty good deal because it makes the entire process much easier on you. Normally, to refinance a mortgage you have go through all the stuff you originally did when you got the first loan. A typical refinance requires that you give your new lender all the paperwork showing you can pay the mortgage, multiple years worth of tax returns, pay stubs, bank statements, a property appraisal and inspection that you have to pay for, etc.

The IRRRL doesn't need any of this paperwork, there are also no appraisals or inspections required so you won't have any of those costs. You won't need a credit check because there is no minimum credit score requirement, though the lender will check your payment history to make sure you have been paying your existing loan as required.

You cannot receive any cash from the loan proceeds, check out our Cash Out & Refinance page for details on that program.

An IRRRL can be used only when refinancing an existing VA loan to another VA loan. You don't need to get a new certificate of eligibility from the VA for an IRRRL; you can just show your lender your original one.

All VA loans do have a funding fee, but you can finance that fee as part of the mortgage, so you can get a new mortgage for no out-of-pocket costs. No lender can be required to give you an IRRRL, but you don't have to use the same lender as your original loan. The VA recommends you shop around when considering an IRRRL, you should also do the math to make sure refinancing is the best option for you.

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