The Interest Rate Reduction Refinance Loan or the IRRRL program of the United States Department of Veteran Affairs has helped millions of military home owners reduce the burden of loan repayments. The VA IRRRL, also called VA Streamline Refinance, helps you to reduce the interest rate of your existing VA Loan and thereby reduce the monthly payments. In this post, we would be looking at some of the important facts that you should know as that would help you plan about getting a VA Streamline Refinance.
- You can get the benefits of the VA IRRRL Program, only if you have an existing VA Loan. Unlike the VA Cash-Out Refinance Program, you cannot use it to refinance your FHA Loan or Conventional Home Loan.
- You can use the VA Streamline Refinance Option to lower the interest rate of your VA Loan. You can even use it to move from an ARM to Fixed Rate Mortgage Loan.
- You don’t need to get your Certificate of Eligibility to get a VA IRRRL. Your lender can use the e-mail confirmation process of the VA in lieu of the COE.
- Try to compare the VA refinance rates offered by different lenders. Different lenders would offer different rates and you can save big by getting the cheapest loan.
- You can roll the closing cost of the existing loan into the VA IRRRL. This way, you can get your home refinanced without giving anything out of your pocket.
- You need to pay a funding fee to get a VA home loan refinance. The funding fee would 0.50% of the total loan amount.
- You must NOT receive any cash from the refinance loan.
- You can take additional amount of money to make energy efficient home improvements.
So these are some of the facts that one should know before planning to go for a VA home loan refinance. Get in touch with a professional and VA approved lender and reduce the burden of repaying your VA Home Loan.
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