Any tips on refinancing a VA home loan? I'm looking at IRRRL loans?

SPC Michael Dillon — Tue, 11 Jun 2019 17:28:18 -0400

What are current interest rates for refinance of a VA home loan? I'm looking into IRRRL loans, they don't seem to be much of a reduction unless I pay points. Is it smart to buy the points. Currently @ 4.3% in NYS.

Response by SGT Javier Silva made Jun 11 at 2019 6:55 PM

SGT Javier Silva — Tue, 11 Jun 2019 18:55:07 -0400

The best place for information. I don't know if you've read this.
https://www.benefits.va.gov/homeloans/irrrl.asp

Interest Rate Reduction Refinance Loan - VA Home Loans

Interest Rate Reduction Refinance Loan page for the VA Loan Guaranty Service

Response by John Burke made Aug 23 at 2019 4:09 PM

John Burke — Fri, 23 Aug 2019 16:09:15 -0400

I have several Veterans locked in on IRRRL refis between 3.25-3.5% right now. The great thing about the IRRRL is the Net Tangible Benefit requirement because it requires that your rate drops at least .5% & that you recoup your closing costs in 36 months or less. If those 2 things do not occur, the lender cannot close your loan.

Response by Sgt Chris Cornejo made Jan 22 at 2020 10:42 PM

Sgt Chris Cornejo — Wed, 22 Jan 2020 22:42:14 -0500

I hope this comment doesn’t throw you off, but what you are saying is correct. It is all based on what is going on in the economy, but what I learned was if you get 2 to 3 lenders working on a IRRRL it will help you. They will compete for your business and will start offering lower rates, points, and so forth. I have actually said to lenders that I was offered a better deal somewhere else and they usually try an beat it. In the big picture if it doesn’t really get you a huge savings it’s best to wait. Your 4.3% is a good rate. Of course the lower the better. I had one lender tell me in 2019 that we would never see under 5% for a long time. He was wrong!!!

Response by SGT Mark Haymond made Sep 24 at 2020 12:00 AM

SGT Mark Haymond — Thu, 24 Sep 2020 00:00:20 -0400

I just did an IRRRL refinance of a VA loan. It is super easy. You don’t have to show income or assets. There is no appraisal. The interest rates are lower for VA refinances. Make sure you talk to a finance company or loan broker who is familiar with VA refinances. If he treats your IRRRL VA refinance like all other loans you will be doing things that you don’t need to do (like prove income, assets and pay for an appraisal). You should be able to get an interest rate below 3.0%. I paid a little extra and got 2.375%. The extra you pay to buy down the rate can be added to the loan. I figure the extra closing costs will be made back in one and a half years so paying down the rate is definitely worth the extra cost. Calculate how much you will save over the life of the loan at 2.375%. A VA refinance is a wonderful benefit of having a VA loan.

Response by SFC Joe S. Davis Jr., MSM, DSL made Oct 12 at 2022 4:53 PM

SFC Joe S. Davis Jr., MSM, DSL — Wed, 12 Oct 2022 16:53:58 -0400

thanks for sharing