If you are a current military member or a veteran interested in refinancing your mortgage and have previously purchased a home with a VA loan, there are options available to help you obtain a more favorable rate. An interest rate reduction refinance loan, (or IRRL), is one option that could help you lower your monthly mortgage payments and help make your payments more stable. If you are located in Jacksonville, Florida, and want to learn more about your VA loan refinancing options, North Star Mortgage Network, Inc. can help. Read on to learn about how VA IRRL refinancing could help save you money.

What Is VA IRRL Refinancing?

An interest rate reduction refinance loan, (sometimes called a VA streamline), provides the opportunity for military service members and veterans to replace an existing VA loan with a new one with a lower rate and different terms. The refinance process for an IRRL occurs quickly because it requires less paperwork and does not require an appraisal of the home. In order to be eligible for an IRRL, it must be evident that the refinance will benefit the lender, therefore the monthly payment must be reduced or a borrower’s interest rate must be lower than the original rate in order to qualify.

The Advantages of VA IRRL Refinancing

An IRRL refinance offers several benefits for a borrower, in addition to saving the borrower a significant amount of money, its uncomplicated document requirements, and fast processing time. The VA does not typically require underwriting or a credit score, and unlike other refinancing options, the home is not required to be the borrower’s primary residence in order to be refinanced. Also, in some cases, closing costs are not required in an IRRL refinance.

Eligibility Requirements for a VA IRRL Refinance

Certain eligibility requirements need to be met in order to qualify for an IRRL refinance, including:

  • You must already have an existing VA mortgage loan
  • The payments on your current mortgage must be up to date, and you must have made the past three payments on time
  • The newly refinanced mortgage payment needs to be lower than your previous payment
  • The refinanced rate must be lower than the new loan rate
  • You will be required to pay a VA funding fee, although it can be waived in some cases
  • If you don’t live on the property anymore, you must certify that you lived there previously

Get Assistance Applying for a VA IRRL Refinance

Refinancing your current VA loan with a VA IRRL refinance can end up saving you a great deal of money over time. If you are interested in learning more about your refinancing options in Jacksonville, Florida, contact the loan specialists today at North Star Mortgage Network, Inc. for a consultation.