VA IRRRL requirements
How soon can you do a VA IRRRL? In 2018, the Protecting Veterans from Predatory Lending Act became law. It requires a seasoning period of either 210 days from the date of the first payment or after the sixth monthly payment (whichever's longer) before an existing VA loan can be eligible for an IRRRL.
The VA says the "occupancy requirement for an IRRRL is different from other VA loans. ... VA IRRRL benefits can lead to monthly savings or a fixed-rate loan which can be a good deal for many qualifying veterans and military families. At least it's worth a look.
Many borrowers use it to take a shorter term that helps them pay off their loan faster. Again, as long as the payment doesn't increase more than 20%, it's eligible for the VA IRRRL program. Overall, you can use the VA IRRRL program as often or as much as you want as long as there is a benefit.
Most VA IRRRL loans require a 0.5% Funding Fee, although some Veterans are exempt from paying the fee if they are disabled. An example of how this works is, if you're paying a 0.5% funding fee on a $200,000 mortgage, your total IRRRL Funding Fee will come out to $1,000.
Current VA IRRRL Rates
| VA Loan Type | Interest Rate | APR |
|---|---|---|
| 30-Year VA IRRRL Streamline | 2.750% | 2.865% |
| 15-Year VA IRRRL Streamline | 2.375% | 2.656% |
| 30-Year VA IRRRL Streamline Jumbo | 2.750% | 2.922% |
Is it worth refinancing for 1 percent? Refinancing for a 1 percent lower rate is often worth it. One percent is a significant rate drop, and will generate meaningful monthly savings in most cases. For example, dropping your rate 1 percent — from 3.75% to 2.75% — could save you $250 per month on a $250,000 loan.
You can't take cash out of your home – Unlike the VA cash-out refinance, the IRRRL doesn't allow you to receive any cash proceeds during the loan process. This is a major downside if you have a lot of home equity and you want to use it to pay down debt, pay for home improvements or reach another financial goal.
Veterans United: NMLS#1907
Good for: veterans, active-duty service members and eligible reservists looking to refinance VA or non-VA loans. Offers VA IRRRL, or “streamline,” and cash-out refinance loans. Access to 24/7 customer service over the phone.
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