Interest Rate Reduction Refinance Loan - VA IRRRL

Interest Rate Reduction Refinance Loan

The VA Interest Rate Reduction Refinance Loan (IRRRL) lowers your interest rate by refinancing your existing VA home loan. By obtaining a lower interest rate, your monthly mortgage payment should decrease. You can also refinance an adjustable rate mortgage (ARM) into a fixed rate mortgage.

IRRRL Facts

• No appraisal or credit underwriting package is required when applying for an IRRRL.
• An IRRRL may be done with "no money out of pocket" by including all costs in the new loan or by making the new loan at an interest rate high enough to enable the lender to pay the costs.
• When refinancing from an existing VA ARM loan to a fixed rate loan, the interest rate may increase.
• No lender is required to give you an IRRRL, however, any VA lender of your choosing may process your application for an IRRRL.
• Veterans are strongly urged to contact several lenders because terms may vary.
• You may NOT receive any cash from the loan proceeds.

http://www.benefits.va.gov/homeloans/irrrl.asp

Also read more about the VA IRRRL by clicking on the link.