The VA Interest Rate Reduction Refinance Loan: aka IRRRL, aka VA Streamline Refinance

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If you currently have a VA Loan and haven’t refinanced in the past year or two, with current 30 year fixed VA rates hovering around 3.5% you could probably lower your rate and save a chunk of change each month.  Odds are your best option is most likely a VA IRRRL (Interest Rate Reduction Refinance Loan) otherwise known as a VA Streamline Refinance.  An IRRRL refinances your existing VA mortgage into a new one at a lower interest rate.  You can also refinance from an adjustable rate mortgage (ARM) into a fixed rate mortgage, even if the fixed rate is higher than the current rate on your ARM.

You don’t have to use the same lender that currently services your mortgage for a VA IRRRL.  You can use any VA approved lender that offers the VA IRRRL.  It is in your best interest to check with other VA lenders to see if they can give you a lower rate than your current mortgage servicing company.

The requirement for a VA Streamline Refinance are pretty easy and straight forward (as far as mortgage loans go).  Here are the basic eligibility requirements for an IRRRL loan:

  • Must be refinancing an existing VA Loan into a new VA Mortgage.
  • No late payments in the past 12 months.
  • Must certify that you have been occupying the property.
  • Cannot take more out on your new loan than what you currently owe.  However, closing costs can be added to the new loan so there is not any cash out of pocket to refinance

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