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VA Refinance (IRRRL)

VA Refinance & IRRRL

va refinance VA Refinance Are you a VA mortgage holder? If the answer is yes you will benefit from a VA Refinance or an IRRRL. There is only one exception: when you refinance from an existing VA ARM loan to a fixed rate. In this particular case using the IRRRL might increase your interest rate instead of decreasing it. The Interest Rate Reduction Refinance Loan (IRRRL) also called "Streamline" refinance, is offering the VA Loan holders the possibility to make significant savings and take advantage of lower interest rates, currently available. So, if you don’t refinance from an existing VA ARM loan to a fixed rate, take advantage of the low-interest rates via an IRRRL and save thousands of dollars. Using the same program, IRRRL, you can also move from a 30-year loan to a 15-year loan. In this situation, you will not see a decrease in your monthly payments but you will save even more in interest rates over the span of the loan. Balance carefully the long term advantages with the short term ones as if you chose to move to a 15-year loan your monthly payments will go higher and you need to have the capacity to cover monthly payments now and in the future, for 15 years is still a long period of time.

Requirements of the IRRRL program:

  • The IRRRL program doesn’t allow you to receive cash proceeds when refinancing, for example for a remodeling project even when there is enough extra equity in your home. There is one small exception here, as well, you can get an additional amount that cannot exceed $6,000 for energy efficiency improvements.
  • IRRRL program doesn’t allow you to combine your existing mortgage and a second one in the refinancing program.
  • No more than one 30-day late payment on your mortgage within the past year is allowed to qualify for IRRRL program.
The IRRRL program has a very smooth process:
  • You do not need a new Certificate of Eligibility (CoE). The lender will be able to receive the VA’s e-mail confirmation for interest rate reduction refinance.
  • The VA doesn't require a new appraisal or credit check, but the lender might ask for one of these documents or might require both of them.
  • The only cost required by VA is “a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan." As a result, you can apply for refinancing even if you don’t have enough cash in hand.  All costs can be included at your request in the new loan.
  • The occupancy requirement for an IRRRL is less restrictive than the one for the VA loans. You just need to certify that you previously occupied the real estate you want the refinancing for.
  • You can go to any lender you want not only to the one that holds your current mortgage.

VA refinance & streamline refinance checklist:

  • A copy of your NOTE from the loan package you received from the title company when you closed on your loan last
  • Your current VA Case #.  This is listed on your HUD-1 settlement statement which is also part of the loan package
  • A most recent mortgage statement
  • Copy of your homeowner's insurance
  • Copy of your Driver’s License and Social Security Card
  • Payroll Stubs for the last 30 days.  If you are active military, then a Leave & Earnings Statement (LES) which must be printed from a base computer
  • Copy of your DD214 if you are not active military
  • Energy-efficient changes, if applicable

Cash Out VA refinance,

  • you may be asked to provide your last 2 years tax returns & W-2s.
  • a motivational letter explaining why you wish to pull equity out of the home
In conclusion, if the interest rate for your VA loan is at least 1 percentage point above the going rate it will be a good idea to start asking several lenders about the IRRRL program. The rest is about calculating savings and costs and deciding which lender has the best offer for you. When doing the math take into consideration that fees roll over into the loan plus the extra costs and the additional $6,000 for energy efficiency improvements may result in owing more than the fair market value of the house. We know that refinancing a loan can be a daunting process. But you don’t have to go it alone. Casey Moseman can give you expert advice and guidance at every step. Getting in touch with Casey Moseman will ensure that you have the best possible options for your needs. In addition, you will also benefit from the expert opinion she offers.

If you have any questions, or to discuss if this VA Refinancing is right for you, then please contact Casey Moseman at 702-271-1274

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