VA IRRRL: VA Streamline Refinance

Backed by the Department of Veterans Affairs, this loan program offers a simplified process to make refinancing easier and less expensive for Veterans, Active-Duty Service Members, and other eligible borrowers with current VA loans. 

While the primary purpose of a VA IRRRL is to save money, usually with a lower mortgage interest rate, advantages include:  

• Getting monthly savings with lower mortgage payments 
• Getting stable mortgage payments by changing from an adjustable to a fixed rate  
• Paying your loan off sooner by reducing a 30-year loan to a 15-year loan  
• Saving over the life of the loan by reducing your interest rate  
• Including the costs of refinancing in your new home loan  
• Refinancing without an appraisal or credit underwriting  

The most common reason to refinance with an IRRL is to get a lower refinance interest rate. However, the VA wants to be sure you’re getting a net tangible benefit from the refinance, which means the savings from the loan outweigh the costs of obtaining the loan. Your savings may come from a lower rate, a change from an adjustable rate to a fixed rate, or a shorter loan term. Your loan officer will show you your tangible net benefit before you commit to your loan.