VA Refinance Loans in Chicago. Get to Know Earl (IRRRL)
The VA has introduced another friend to military veterans—Earl. Or “IRRRL,” rather. IRRRL stands for the Interest Rate Reduction Refinance Loan and it is yet another way veterans can take advantage of the VA’s efforts to make home-buying easy for veterans and their families.
IRRRL, or sometimes referred to as a “streamline” refinance of “VA-to-VA Loan,” is an opportunity for those who have existing VA loans to refinance at a lower rate. This extremely popular program allows veterans to maintain the advantages of refinancing their loan while not losing the benefits that drew them to the VA loan in the first place. Plus, with the government-backed guarantee, the closing costs are rolled back into the loan. This means no out-of-pocket costs for you at the closing table!
An added benefit to the IRRRL program is one that is slightly more hidden. If you’re someone who is a bit leery about moving around numbers because it can, understandably, get overwhelming, this loan program offers peace of mind. This refinance program requires you to benefit from this refinance. That is to say that if this loan does not benefit you in some way, it cannot be done. A couple of options are to refinance out of an existing adjustable rate or to lower the monthly payment. Either way, the IRRRL program offers peace of mind in that you must benefit from the refinancing options.
In order to qualify for the IRRRL program you must meet the following conditions:
- Be current on your mortgage with no more than one 30-day late payment within the past year.
- Your new monthly payment for the IRRRL must also be lower than the previous loan’s monthly payment. (The only time this condition does not apply is if you refinance an adjustable rate to a fixed rate mortgage.)
- You must not receive any cash from the IRRRL.
- You must certify that you previously occupied the property.
- You must have previously used your VA Loan eligibility on the property you intend to refinance.
If you’re someone who has already taken advantage of the VA’s Home Loan Program and are thinking about refinancing, the IRRRL is for you. With minimal hassle (because you went through it the first time) and peace of mind, the VA is at it again offering veterans a home loan program with amazing benefits. For more information on VA Loans, contact us below.