Can I Do an IRRRL Right Now? (Streamlined Refinance)

I’ve heard rates have come down significantly in the past 30-60 days, is it true?

Yes, it is.

And that also then begs the question, do I have the ability to possibly do a refinance here in the near future?

And I say for some folks, yes, that definitely is possible. In fact, we have a lot of folks that are already on our radar to see if we can do an Interest Rate Reduction Refinance Loan, otherwise known for VA loans as an IRRRL.

My name’s Evan Kaufman and I’m your VA loan originator. Let’s get into a little bit.

So, what is an IRRRL?

I like to say it’s your favorite Uncle Earl. Now, a lot of us don’t have rich uncles. We always hear the statement, ‘Oh, your rich uncle could come help you, take care of you.’

Well, the VA IRRRL is kind of like that.

We have a lot of videos on explaining the power of a VA IRRRL, but think of it this way: the VA loan is the only loan type that has an IRRRL ability.

And that is where, if for some reason we can lower your rate by at least half a percent, the VA has said, ‘Hey, Lender Evan, if you guys can lower their rate by at least half a percent, then we’ll still guarantee it, and they don’t have to pay for an appraisal.‘

We don’t even have to worry so much about income verification and then your credit, if it blew up, that can be okay as long as you’ve made your payments. We can still look to do an IRRRL and lower your interest rates.

So, over the last 30-60 days, rates have pulled back quite a bit. They were at all-time highs at the shooting of this, it’s early December.

If you took out a VA loan and it was in the 7% plus range on your mortgage, you really might want to start asking the question of, ‘Hey, can I do an IRRRL?’

Remember, every lender is different, so reach out. We’re more than happy to tell you what the range is for things and also compare it to your situation.

Because with a VA IRRRL, you’ve got to wait 210 days past that first payment.

So, if you’ve taken out a loan in the past few months, you might want to start preparing to make sure that as long as rates kind of hold where they’re lower here in the next few months, you’re going to be able to make it happen.

Now, if you took out a VA loan, let’s say six-seven months ago, this is December, so if we’re looking back this summer or spring and you happen to be in that 7% range plus on a VA loan, we know some folks that have had that. It really might be the opportunity in time to start looking at doing a VA IRRRL.

Hopefully, this helps get you to understand a little bit more about VA IRRRL, interest rates, and how they’re changing. We always got to be careful quoting rates, right? Changes every day, all the time.

But I can say if your rate was over 7% as of this time, if your rate was over 7% just a few months back, you might want to consider looking at, ‘Hey, do I have the ability to do a VA IRRRL or not?’ Because you might be surprised at what the interest rates can do for you.

My name’s Evan Kaufman, your VA loan originator. Hopefully, this helps you save some money with a VA loan. Take care.