"IRRRL stands for
Interest Rate Reduction Refinancing Loan. You may see it
referred to as a "Streamline" or a "VA to VA." Except when
refinancing an existing VA guaranteed adjustable rate mortgage
(ARM) to a fixed rate, it must result in a lower interest rate.
When refinancing from an existing VA ARM loan to a fixed rate,
the interest rate may increase.
No appraisal or
credit underwriting package is required by VA. You should be
aware, however, that lenders may require an appraisal and credit
report anyway.
A certificate of
eligibility is not required. Your lender may use our e-mail
confirmation procedure for interest rate reduction refinance in
lieu of a certificate of eligibility.
An IRRRL may be
done with "no money out of pocket" by including all costs in the
new loan or by making the new loan at an interest rate high
enough to enable the lender to pay the costs. (Remember: The
interest rate on the new loan must be lower than the rate on the
old loan unless you refinance an ARM to a fixed rate mortgage).
No lender is
required to make you an IRRRL, however, any lender of your
choice may process your application for an IRRRL. While it might
be the best place to start shopping for an IRRRL, you do not
have to go to the lender you make your payments to now or to the
lender from whom you originally obtained your VA Loan."
