Since the country has been plunged into a world wide pandemic, interest rates are historically low. If you ever thought about refinancing your house and your are a qualified Veteran or a spouse of a widowed Veteran, then this is the opportunity of a lifetime! If you purchased your house at an interest rate of 6% or slightly below, now is the time to see if requesting an IRRRL would be right for you. Qualified Veterans are authorized this loan if they were honorably discharged from the military, they served at least 180 days active duty.

Interest Rate Reduction Refinance Loan

If you have an existing VA-backed home loan and you want to reduce your monthly mortgage payments—or make your payments more stable—an interest rate reduction refinance loan (IRRRL) may be right for you. Refinancing lets you replace your current loan with a new one under different terms. Find out if you’re eligible—and how to apply.

Am I eligible for an IRRRL?

You may be able to get an IRRRL if you meet all of the requirements listed below.

All of these must be true.

• You already have a VA-backed home loan
• You are using the IRRRL to refinance your existing VA-backed home loan
• You can certify that you currently live in or used to live in the home covered by the loan

Note: If you have a second mortgage on the home, the holder must agree to make your new VA-backed loan the first mortgage.

Why might I want to get an IRRRL?

Often called a “streamline” refinance, an IRRRL may help you to:

1. Lower your monthly mortgage payment by getting you a lower interest rate
2. Make your monthly payments more stable by moving from a loan with an adjustable or variable interest rate (an interest rate that changes over time) to one that’s fixed (the same interest rate over the life of the loan)

On a no-down-payment loan, you can borrow up to the Fannie Mae/Freddie Mac conforming loan limit in most areas—and more in some high-cost counties. You can borrow more than this amount if you want to make a down payment. 

You’ll want to keep closing costs in mind when refinancing a loan, as they can add up to thousands of dollars. Before you decide to refinance, divide your closing costs by how much you expect to save every month by refinancing to see if it’s worth it. (Since Closing costs are on this loan. They will roll it into the new loan, which may make it slightly higher than you would have had originally.)

While your lender can advise you on the costs and benefits of the transaction, you’ll want to be sure you understand what you’re getting into. How do I get an IRRRL?

Find a lender

(Try Ray Wolff-The Federal Savings Bank-703-4032-1980 cell phone)

You’ll go through a private bank, mortgage company, or credit union—not directly through us—to get an IRRRL. Terms and fees may vary, so contact several lenders to check out your options.

Note: If you have a VA home loan be careful when considering home loan refinance offers. Claims that you can skip payments or get very low interest rates or other terms that sound too good to be true may be signs of a misleading offer. 

Give your lender any needed information

If you have the Certificate of Eligibility (COE) you used to get your original VA-backed home loan, take it to your lender to show the prior use of your entitlement. If you don’t have your original COE, ask your lender to get your COE electronically through the VA Home Loan program portal.

Follow your lender’s process for closing on the IRRRL loan, and pay your closing costs

You may need to pay the VA funding fee. This one-time fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn’t require down payments or monthly mortgage insurance. Your lender will also charge interest on the loan in addition to closing fees. 
Learn about the VA funding fee and other closing costs

With an IRRRL, you can include these costs in the new loan so you don’t have to pay up front. Or, you may be able to make the new loan at an interest rate high enough so your lender can pay the costs.

Note regarding closing costs

Since you would have to pay closing costs for a refi, please be aware that by rolling your closing costs into your new loan, it may not save as much money as it could have. Be mindful of that fact and be sure you that would be worth the effort of doing the refi.

Source: https://www.va.gov/housing-assistance/home-loans/loan-types/interest-rate-reduction-loan/

If you are interested in getting a IRRRL loan, or purchase a home, please feel free to contact Ray Wolff Mortgage  Banker of Federal Savings Bank [email protected] his direct #703-688-7148/fax#-703-996-4430/his cell#703-402-1980.