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VA Interest Rate Reduction Refinance Loans (IRRRLs) in Seattle

Are you paying on a VA mortgage right now? If so, you might be wondering whether it is possible for you to refinance a VA loan to take advantage of lower interest rates. The answer to that question is yes. In fact, you can apply for a specific type of refinance called a VA Interest Rate Reduction Refinance Loan (IRRRL).

Get Pre-Approved Today!

What is an Interest Rate Reduction Refinance Loan (IRRRL)?

An IRRRL is simply the type of loan you apply for when you want to refinance one VA loan to another.

For this reason, IRRRLs sometimes are referred to as “VA to VA” loans. They may also be referred to as streamlined refinances.

What are the Benefits of an IRRRL in Washington State?

  • When you apply for an IRRRL, your new mortgage will also be a VA loan, complete with all the same excellent benefits you are enjoying now.
  • If interest rates today are lower than they were when you originally applied or if your borrower profile has improved, you could qualify for lower interest rates and fees by refinancing today with an IRRRL.
  • You can use an IRRRL to convert between a fixed and adjustable rate or back.
  • IRRRLs really are a “streamlined” product. How so? The VA does not require a credit underwriting package or an appraisal. You also do not need a Certificate of Eligibility (more on that shortly). The process is rapid and simple so that you can start saving right away with your new mortgage.
  • If the rate decrease is large enough the closing costs for your new mortgage can be paid by the lender ($0 cost mortgage) so you do not have to pay money out of your pocket or increase your loan balance. You can also buy down your new low rate even further and roll the buydown costs into the new loan or its interest rate so that you do not need to pay any upfront costs for the IRRRL.
  • If you need more time to pay off your mortgage, you can refinance to a longer term. Conversely, you could also refinance to a shorter term if you prefer.

Do You Qualify for an IRRRL in Washington?

Here are the basic eligibility criteria for qualifying for an IRRRL:

  • Your existing mortgage must be a VA loan.
  • You must be refinancing to another VA mortgage.
  • You need to provide your Certificate of Eligibility if you have it. If you do not, however, the lender can obtain it electronically, which saves you some time and hassle.
  • Even though the VA does not require an appraisal or credit underwriting package, your lender might still need these from you.
  • You can only get an IRRRL for a property you currently or previously occupied.

Apply for a Washington IRRRL Now

If you are ready to quickly and easily refinance your existing VA mortgage into a new VA loan with the same great benefits and a lower interest rate, Blue Square Mortgage can rapidly move you through the process. We are also here to answer any questions you might have about IRRRLs. To schedule your consultation, please give us a call today at (206) 352-6453.

Get Pre-Approved Today!