Win Currency Wars with IRRRL Loans

Military personnel, as well as veterans, with a current VA credit, have a unique refinance option. The name of this opportunity is IRRRL or the Interest Rate Reduction Refinancing Loan. Its purpose is to ensure that the existing debt will be refinanced into the new credit. It includes a massive reduction in interest rates. Also, there are no out-of-pocket costs, or they are just minimal. If you apply for this program, you also have a chance to replace your adjustable rate mortgage with the fixed rate one.

Qualifications for IRRRL

It is simple to qualify for this VA refinance opportunity. One of the conditions you need to fulfill is to have the past 12 loan payments paid on time, without any delays. If your credit obligations in the last year are current, you are eligible for IRRRL. Also, if your existing mortgage has fixed interest rate, the refinance loan must have a lower rate.


If your current rate is adjustable, you can refinance to a fixed one, no matter if it is higher or lower than the existing one. Keep in mind that particular lenders have made a decision to tighten up the requirements in the last couple of years. That’s why you should check with the bank to see what conditions you need to fulfill, just in case.

Do you need to apply with your current lender?

You are not under obligation to work with your present bank if you want to take out an IRRRL. You can choose from various lenders. However, make sure the new one is also VA approved. It is up to you to shop around for the most suitable refinancing provider. Take a look at offers from several lenders, and choose the one most appropriate for your situation. Go for someone who will respond to your calls and emails promptly. Also, make sure they take your refinance seriously. If you want to find out more about taking out an IRRRL, click here.

Benefits of IRRRL

The first advantage is that there is no minimum credit score. It means you can apply, no matter how high your income is. If your rating is bad due to the current economic situation, you can still apply for this refinancing program. All you need to do is to have the existing VA loan, as well as not to be late on the payments in the last year.


The second benefit is that there is no income and job verification. No matter if you don’t have a job at the moment, or you are self-employed, you are eligible for applying for this refinance loan. You can also take out this credit if you are collecting unemployment. None of this will disqualify you.

Also, the lender can roll the closing costs into your new mortgage. Additionally, you can even ask if you can skip the first two payments. As you can see, IRRRL loans have many benefits. If you want to refinance the current mortgage, you just need to check if you are eligible for this program, choose a lender, and apply. It is quite simple.