If you are a veteran, there are several benefits available to you — especially when it comes to loan assistance. One of these benefits is the VA IRRRL program.
The VA IRRRL — or the Department of Veteran Administration Interest Rate Reduction Refinance Loan — is a program for veterans that would allow them to refinance an existing VA loan for lower interest rates. It makes refinancing easier, allowing veterans to find lower payment schemes for their mortgages. The VA IRRRL will allow you, as a veteran, to negotiate the rate of your loan (whatever type it is) with your lender.
In short: the idea is that IRRRL loan rates will be lower than the rates of your existing mortgage, which should savings for you.
How would you know if the VA IRRRL is the best option for you?
The main benefit of the IRRRL is that it makes refinancing easier. There are certain requirements, of course: you need to be an eligible veteran or an active duty service member, for instance.
But if you have good mortgage payment history, you should not have any problem. As a veteran, you are essentially eligible as long as you have an existing VA loan.
Another advantage of the VA IRRRL program is that it will not require you to re-qualify for a loan. There will be no need to assess your credit score or income documents. The assumption is that since you have a good payment history on your existing loan, you will not have any problems if you refinance it with your new IRRRL loan rates.
Compared to other refinancing options, the VA IRRRL does not require you to pay for any out-of-money fees such as closing fees or funding fees. All of these fees that are usually paid upfront other loans and refinancing options will be included in your loan balance. These will be paid off monthly as part of the monthly mortgage.
Other veterans — disabled veterans, for instance — may qualify to have these fees waived as well.
Of course, there are a few disadvantages to the VA IRRRL — although these are minor compared to the advantages.
For one, the loan will still include closing fees; they are simply included in your mortgage rate. This means you are paying for them monthly and it is included in your <a href=”https://www.vets.gov/housing-assistance/home-loans/loan-options/irrrl/”>IRRRL loan rates</a>. The effect of this on your rate is minimal and it saves you from having to pay an upfront fee.
Lastly, having your loan refinanced means you are extending the length of your loan. Getting a VA IRRRL would mean restarting your loan. Of course, this in itself is not entirely a disadvantage if you’d decide that paying for a longer period of time is better than paying for more over a shorter duration. It’s really a matter of making sure you would gain something for the loan rate you will get.
In the end, it’s really how you manage your loan. The VA IRRRL is an option available to veterans that would allow them to have flexibility with their finances.
Is VA IRRRL right for you? Find out about the <a href=”http://vairrrlrates.co/”>IRRRL loan rates</a>, the pros and cons, and a lot more at www.vairrrlrates.co.<br />