VA mortgage holders: drop your interest rate and monthly payment with minimum hassle.


This is perhaps the simplest kind of loan you can find on the market.

The VA-backed streamlined refinance product is called the Interest Rate Reduction Refinancing Loan  - IRRRL, and allows vets to drop their VA mortgage rate WITHOUT a new appraisal or credit underwriting process.

The loan’s structure provides additional shortcuts. Since the veteran must already have received their certificate of eligibility - COE -  to take out the initial VA loan, repeat COE documentation is not required.

The IRRRL only works on properties that were purchased using a VA loan under the veteran’s VA Loan eligibility. The initial entitlement used by the veteran is simply reused, and the borrower must only prove that he/she previously occupied the home.

Once qualified, the veteran must complete the streamline refinance by obtaining a lower mortgage rate. The veteran may also refinance an adjustable rate mortgage to fixed at any time – even when the fixed rate is higher.

The funding fee for the VA loan is just 0.5%. A loan of $100,000, for example, would incur a $500 fee.