VA IRRRL Rates - Current VA Loan Streamline Refinance Rates

Today's VA IRRRL Rates (Updated Daily)

VA IRRRL rates change daily and are affected by market conditions, lender pricing, and borrower factors, like credit score and debt-to-income ratio (DTI). In the table below, you can see the current national VA IRRRL rates for today.

Do You Qualify for a VA IRRRL?

To use a VA IRRRL to refinance an existing VA mortgage, you must meet certain eligibility requirements. The basic VA IRRRL qualifications include:

• You currently have a VA loan.
• You are refinancing your VA mortgage into another VA-backed loan.
• You currently live in the home, or previously lived there.

You will not qualify for a VA IRRRL if you have a non-VA mortgage and want to refinance to a VA-backed loan. Additionally, this type of refinance is not available for rental properties or investment properties if you never lived in the home.

VA IRRRLs can be beneficial for military borrowers because they are typically easier to qualify for than a traditional refinance. That is because VA Streamline Refinance loans do not usually require income verification, credit approval, or a home appraisal, which can expedite the process.

What Factors Influence VA Refinance Rates?

VA Streamline Refinance rates change daily, and there are several factors that can affect VA IRRRL interest rates. These may include economic factors, loan terms, and the borrower's financial history. Here is a closer look at some of the factors that can impact rates:

• Market conditions: VA mortgage rates follow trends within the broader bond market, especially U.S. Treasury yields and mortgage-backed securities.
• Credit score: Even though the VA does not set a minimum score for VA mortgages, lenders usually do. Borrowers with higher credit scores usually pay lower interest rates.
• Loan term: VA IRRRL rates for 30-year fixed mortgages are usually higher than for 15-year mortgages. Adjustable-rate mortgages (ARMs) may have higher rates over time.
• Loan size: The amount of money you need to borrow can affect VA refinance rates. Typically, larger loans have higher interest rates than small loan sizes.
• Discount points: Some VA borrowers choose to purchase discount points to reduce their interest rate when refinancing an existing VA loan.
• Lender: Different lenders offer varying interest rates. Comparing interest rates from multiple VA refinance lenders can help you find the best VA IRRRL rates today.

Benefits of VA Streamline Refinancing

The VA IRRRL is a popular option among military homeowners with an existing VA loan. It can help you get better loan terms, and it is usually easier to qualify for than traditional refinancing. Here are some of the main benefits of a VA Streamline Refinance:

• Lower monthly payments: The most common reason why borrowers use the VA IRRRL is to reduce their interest rate and monthly mortgage payments. It can be a good solution if interest rates have dropped since the original mortgage.
• Minimal documentation: VA Streamline Refinance loans typically have no income verification, credit requirements, or appraisal. Plus, there is usually limited paperwork involved, so the new loan closes more quickly.
• Closing costs are capped: The VA limits what lenders can charge for closing costs, which can help keep your expenses reasonable. To compare, traditional refinances that are not backed by the VA do not have closing cost caps.
• Option to roll closing costs into the loan: When you close on a mortgage, you typically pay the closing costs upfront and out of pocket. With a VA IRRRL, you can finance the closing costs with the loan.
• Switch from an ARM to a fixed-rate mortgage: If you currently have a VA ARM, you can use a VA IRRRL to switch to a fixed-rate loan. Changing your ARM to a fixed-rate mortgage can potentially help you save money over the lifetime of the loan.
• Lower VA Funding Fee: Like with VA purchase loans, VA IRRRL loans require a VA Funding Fee, which is currently 0.5%. The VA IRRRL Funding Fee is lower than for VA purchase or cash-out VA loans.

How to Get the Best VA IRRRL Rate (Step-by-Step)

VA IRRRL rates are different for every borrower, and they change daily based on a variety of factors. Below are some tips for getting the best VA IRRRL rate for your situation:

1. Improve your credit score: Before you apply for a refinance loan, pull your credit report and check for any errors. Paying down debt balances can help boost your score quickly, which can reduce your interest rate.
2. Compare multiple lenders: Interest rates can vary significantly between VA loan lenders. Aim to compare quotes from at least three to five lenders to see which one can offer the lowest rate for your loan size, loan amount, and financial background.
3. Understand the APR: When evaluating lenders, look beyond the interest rate and check the Annual Percentage Rate (APR), which includes all fees. Comparing APRs will give you a more accurate comparison of the total loan costs.
4. Consider buying discount points: Most lenders allow you to purchase discount points to reduce your interest rate. While this can be an effective way to get a better rate, it is usually only worth it if you plan to stay in the home for a long period of time.
5. Lock your rate: VA mortgage refinance rates change daily, and sometimes even hourly. Once you find a good interest rate, consider locking it. Many lenders will lock your quoted interest rate for 30 or 60 days, but the exact length of time depends on the lender and the loan.

VA IRRRL vs. Cash-Out Refi: Which One is Best?

An alternative to the VA IRRRL is the VA cash-out refinance. Both loan programs allow you to refinance a mortgage, but they differ in a few ways.

While VA IRRRLs can reduce your interest rate or monthly payments, a cash-out refinance is used to access cash from your home's equity. The right option for you depends on your current mortgage and your goals for refinancing.

The table below shows how the VA IRRRL and VA cash-out refinance compare:

The main purpose of a VA IRRRL is to reduce your mortgage interest rate, or lower your monthly payments. You can also use this type of loan to change your loan term, or switch from an ARM to a fixed-rate mortgage. This option is only available if you have an existing VA loan.

A VA cash-out refinance allows you to withdraw cash from your home's equity. This money can be used for any purpose, but is often used for education, medical bills, emergency expenses, or home renovation projects.

You do not need a current VA loan to do a cash-out refinance, so it can be used to switch from a conventional mortgage to a VA-backed loan (if you qualify).

In general, VA IRRRLs are usually easier to qualify for than VA cash-out refinances. That is because the VA IRRRL requires less documentation and paperwork. In most cases, VA IRRRLs also have lower fees.

To summarize, you should choose a VA IRRRL if:

• You want to reduce your interest rate or monthly payments.
• You do not need cash.
• You want minimal paperwork.
• The value of your home may have dropped.

A VA cash-out refinance is probably a better choice if:

• You want to tap into your home's equity.
• You need funds for renovations, debt consolidation, or other emergency expenses.
• You want to convert a non-VA loan into a VA loan.

Frequently asked questions