Interest Rate Reduction Refinance Loan for current VA loan holders

SGT Chris Birkinbine — Mon, 11 Aug 2014 13:43:36 -0400

I haven't been able to search anything about the IRRR loans, so I thought I would share my experience in case it could help someone out.

Right now the VA is offering Interest Rate Reduction Refinance Loan for current VA loan holders. You do not need a credit check, or any additional information. No new assessments of your property or it's value. All you need have is a current VA loan on the property, and attest that you HAVE been living at this property in the past. (You do NOT need to affirm you WILL live on it in the future, unlike the regular VA loan, so you could potentially use this to make your home into a rental).

It uses your current eligibility you are already using for your VA loan. Basically the idea is to lower your interest rate.

I bought my home in April and am refinancing through this program 2 months later. I dropped my interest from 4.75 to 3.8, and reduced my monthly payments by almost 100 bucks.

If you have a VA loan, I would recommend calling your lender and asking about this program.

Response by SSgt Private RallyPoint Member made Aug 11 at 2014 1:48 PM

SSgt Private RallyPoint Member — Mon, 11 Aug 2014 13:48:45 -0400

I am thinking about buying a new home soon, I think this will help me out a lot.

Response by SGT Private RallyPoint Member made Jan 10 at 2017 12:50 PM

SGT Private RallyPoint Member — Tue, 10 Jan 2017 12:50:20 -0500

PennyMac Loan Services currently holds my VA loan. I inquired about the IRRRL program. Here are the rates they sent me. Lowered my rate from a 4.25% fixed to a 3.75% fixed.Their estimated closing cost is $4461.00 includes $2930.00 in loan costs + $509.00 in Lender Credits + $2040 in Other Costs. Cash to close $418.00. Mind you that I currently owe $115,792.00 on my home. By the time they are done I will owe $120.097.00. Anyone think this is a good deal :( ????

Response by Theresa Tripp made Jan 25 at 2020 6:00 PM

Theresa Tripp — Sat, 25 Jan 2020 18:00:43 -0500

I actually want to stay in the home which only has a 3.75% interest rate, with only 56,550.00 left on the house, but I would like to take some $ out to pay off bills & fix things up around here if at all possible under my husband’s va name is that possible?

Response by CSM Darieus ZaGara made Jan 26 at 2022 5:56 AM

CSM Darieus ZaGara — Wed, 26 Jan 2022 05:56:20 -0500

The only issue is when you go to make a purchase on your forever or home you will live in, the loan is only good the. For primary residence, not allowing you VA benefit, or at best it impacts the maximum authorization on the allowable loan rate.

When you speak to a loan officer also contact the VA. I assure you it is not that clean. On the other hand if you are simply looking to lower your rate it is viable, but remeber there are fees associated from the lender, and though the VA only allows them to charge so much on those fees there are fees. Taking a loan two month as after getting the initial loan also means that those fees are rolled into the new loan.

There is no free lunch.