IRRRL
(Interest Rate Reduction Refinance Loan)

Streamline Your Interest Rate

The IRRRL, often called a “streamline” refinance, is designed for homeowners with an existing VA loan. This loan allows veterans to reduce their interest rate, lower their monthly payments, or switch from an adjustable-rate to a fixed-rate mortgage. The process is fast, requires minimal paperwork, and doesn’t usually require an appraisal.

Key Benefits

Lower interest rate and monthly payments.
No appraisal required, making the process quicker and less expensive.
Available exclusively to veterans and their families.
Allows refinancing into a fixed-rate mortgage from an adjustable-rate loan.

Who It’s For

Veterans or their eligible family members with an existing VA loan.
Homeowners seeking lower interest rates or more stable fixed-rate mortgages.
Veterans who want a quick, low-cost refinance option.

Pros and Cons

Pros:

Lower interest rate: Allows you to refinance at a lower interest rate, saving on monthly payments.
Minimal upfront costs: Often no out-of-pocket expenses due to streamlined paperwork and no appraisal requirement.
Faster process: The IRRRL requires less documentation, making it quicker to close.

Cons:

VA funding fee: A funding fee applies unless the borrower is exempt.
No cash-out option: Unlike other refinance loans, you cannot take out equity as cash.
Limited to VA loan holders: This option is only available to those with an existing VA loan.