If you have a current VA loan and are looking to lower your interest rate then the Interest Rate Reduction Refinance Loan or IRRRL may be the right home loan for you. A VA IRRRL can only be made to refinance a property on which you have previously used your VA loan eligibility. The refinance must be a VA to VA loan, and it will reuse the entitlement you originally used. The VA loan limits vary by county, because the value of a home depends in part on its location. The VA itself does not limit the amount you can borrow to finance or refinance your house. There are limits on how much the VA with “guarantee” a home loan which will affect the amount of money a lender will lend you. You can view the loan limits by clicking on the link provided here, loan limits
The Interest Rate Reduction Refinance Loan is used everywhere in the country, but obviously cities with a heavy military presence VA home loans are more prevalent. Our mortgage experts focus on providing VA loans in San Diego, Los Angeles, Orange County,Riverside and San Bernardino. We have mortgage originators throughout California, but most of our offices are located in Southern California. Our team is composed of former military and mortgage professionals that provide VA home loans for purchases and to help assist those with a VA IRRRL to lower interest rates. As stated above, the VA IRRRL can only be made to refinance a house on which the person applying has already used their VA loan eligibility. It must be a VA to VA refinance, and it will reuse the entitlement that was originally used.
A new Certificate of Eligibility (COE) is not required. You may take your Certificate of Eligibility to show the prior use of your entitlement. Since the VA IRRRL is a VA to VA refinance, you will not be required. Generally speaking, all Veterans using the VA Home Loan Guaranty benefit will have to pay a funding fee. This minimizes the loan’s cost to taxpayers because a VA loan requires no down payment, and does not require any monthly (MI) mortgage insurance. The funding cost/fee is a percentage of the loan amount which differs based on the type of loan and your military category, if you are a first-time or subsequent VA loan user, and whether or not you make a down payment. You will have the option to pay the VA funding fee in cash for to finance it, but the VA funding fee must be paid at closing time. You do not have to pay this fee if you are a:
- Veteran receiving VA compensation for a service-connected disability, OR
- Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, OR
- Surviving spouse of a Veteran who died in service or from a service-connected disability.
If you are interested in the (IRRRL) Interest Rate Reduction Refinance Loan we highly suggest speaking with one of our VA home loan specialist to review your options. Contact us today and find out if you can save money by refinancing your VA loan. We have VA loan experts waiting in San Diego, Los Angeles, Riverside, Orange County and San Bernardino ready to crunch the numbers.