Refinancing to Reduce Interest Payments
Refinancing to lower one’s monthly mortgage payments is a common strategy among borrowers. But if you’re a veteran carrying a VA loan, refinancing gives you the extra edge. The primary objective of this program is to help the borrower lower his or her mortgage payments by lowering his or her mortgage’s interest rates, except for when transitioning from a variable-rate VA loan to a fixed-rate mortgage.
VA Streamline Refinance Program, also commonly known as Interest Rate Reduction Refinance Loan (IRRRL), a veteran with an existing VA loan can refinance his or her mortgage without the need for a re-appraisal, employment, asset, and income verification.
If an unfortunate financial event damaged your credit lately, refinancing via IRRRL can help you get around the credit dilemma.
The VA rates advantage
VA Streamline Refinance Loans are generally lower than traditional, more popular mortgage products. Currently, VA loan rates hover over historic low range between 3 to 4 percent. The rates are also fixed, so you don’t have to worry about fluctuating and resetting rates in the future.
Feel free to collate quotes from various lenders. Contrary to what may other lenders advertise, it is perfectly fine to refinance your VA loan via other lenders. If you find one with a better offer and terms, then do so to your best advantage.