Existing VA loan
IRRRL financing is designed for eligible borrowers refinancing an existing VA-backed mortgage.
VA IRRRL
A VA streamline refinance should still be evaluated on real borrower benefit.
The VA Interest Rate Reduction Refinance Loan can simplify refinancing an existing VA mortgage, but the new payment, costs, recoupment period, term, and benefit should still make financial sense.
Net tangible benefit
The transaction must satisfy applicable VA benefit requirements.
Recoupment
Certain refinance costs may need to be recovered within required timeframes under applicable rules.
Funding fee
A reduced VA funding fee may apply unless the borrower qualifies for an exemption.
Term reset
Extending the loan term can reduce payment while changing long-term interest and payoff timing.
Compare the numbers
Payment savings, closing costs, balance, term, and expected time in the property should be reviewed together.