VA Interest Rate Reduction Refinance Loan (IRRRL) – What You Need to Know

First off — thank you for your service! As a Veteran, you have access to one of the most powerful refinance options available: the VA IRRRL, also known as the “VA Streamline Refinance.”

What Is It?

The VA IRRRL is designed to help Veterans, Active-Duty Service Members, and surviving spouses refinance their current VA loan to a lower interest rate or to change the loan term — with minimal paperwork and no appraisal in most cases.

Key Benefits

• Lower Interest Rate → Reduce your monthly payment.

• No Out-of-Pocket Costs → Closing costs can often be rolled into the loan.

• No Appraisal Required → In most cases, the current home value is not re-verified.

• No Income Verification → The VA does not require full documentation like a new purchase loan.

• Fast Process → Often closes faster than a traditional refinance.

• Option to Skip a Payment → Depending on your closing date, you may skip 1–2 payments.

Who Qualifies?

You may be eligible if:

• You currently have a VA loan.

• You have made at least 6 consecutive on-time payments on your current VA loan.

• Your new loan will give you a tangible benefit (such as a lower rate or shorter term).

Things to Keep in Mind

• You cannot receive cash out with an IRRRL (other than up to $6,000 for energy efficiency improvements).

• Funding Fee: Typically 0.5% of the loan amount (waived if you have a VA disability rating).

• Your interest rate should generally be lower unless you are refinancing from an ARM to a fixed rate.

Example Scenario

If you bought your home recently at 6.5% interest and today’s VA IRRRL rate is 5.375%, your payment on a $450,000 loan could drop from about $2,844/month to $2,522/month — saving you $322 per month. That’s $3,864 per year back in your pocket.

(Rates shown for example purposes only. Actual rates and savings depend on your credit, loan amount, and market conditions.)→ Ask us how to get started with a VA Refinance Today.