The Streamline refinance, or Interest Rate Reduction Refinance Loan (IRRRL), is one of the best options for homeowners who already have a VA Loan and would like to refinance into a lower monthly mortgage rate.
This refinance type is relatively easy and can be completed quickly, due to the fact that homeowners are refinancing from one VA Loan product to another. With this type of refinance, there are several prominent advantages, including no required appraisal in some cases, no need to obtain another Certificate of Eligibility and little to no out-of-pocket costs.
To avoid out-of-pocket costs, homeowners can choose to roll the closing costs and fees into the balance of the loan.
There are only a few requirements and stipulations. Primarily, the borrower is not allowed to receive any cash back from the IRRRL and the borrower must also certify that he or she currently or has previously occupied the property.
Today's interest rates are at competitive levels, and with a reduction of just a half of a percent, a borrower could potentially generate tens of thousands in savings over the life of a loan:
| Amount Paid In Interest | Total Savings over 30 years |
|---|---|
| 150K 0.5% lower interest | $19,033.75 |
| 150K 1% lower interest | $32,696.48 |
| 250K 0.5% lower interest | $31,254.16 |
| 250K 1% lower interest | $54,494.12 |
| 350K 0.5% lower interest | $43,755.83 |
| 350K 1% lower interest | $76,291.77 |
| 450K 0.5% lower interest | $56,257.50 |
| 450K 1% lower interest | $98,089.43 |
Savings and interest rates shown here are for illustrative purposes only and may vary based on a variety of factors. All loans require approval and proof of eligibility and are subject to the complete terms and conditions outlined in the loan agreement documents.
The VA Loan experts at Veterans United Home Loans are ready to guide you through the refinancing process and can answer all the questions you may have.