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>>Text: Mark Connors, VA Home Loan Guaranty Service
>>Speaking: If you already have a VA loan and you want to
lower your interest rate, then we have
a perfect product for you.
It's referred to as the IRRRL,
or Interest Rate Reduction Refinance Loan,
and simply it is a streamlined loan.
It allows you to reduce the interest rate on your current
VA home loan to a rate that is lower than you have now
and with the great possibility of lowering your
overall interest payments over the course of your loan.
Now in order to take advantage of an IRRRL,
you have to have an existing VA loan.
So, in other words, if you had a non-VA loan,
you would not be able to utilize the IRRRL.
However, if you do have an existing VA loan,
then you would utilize the IRRRL.
So here's how that would work: Let's say that when you
purchased your home, you got a really good interest rate.
But it happened to be 6 percent, but at that time 6 percent
interest rates were really good interest rates; well, the
interest rates have dropped. So, you could take advantage
of the VA IRRRL, and here are some of the
advantages of the IRRRL. You could lower that interest rate
from what was, say, 6 percent, and perhaps you can
lower it down to 4 percent. Some of the benefits that are
associated with the IRRRL is that from VA's perspective
we require neither an appraisal, nor do we require
credit and income underwriting. So as a result,
the overall costs associated with the IRRRL will likely be
be less than they would be with a purchase and the time to close
on that loan is likely going to be less.
Now, I want to mention one caveat here because VA
is not actually lending the money;
rather, it is the lender that is lending the money.
It is contingent upon the Veteran to satisfy
the lender requirements. So, for example,
VA does not require credit and income
underwriting with an IRRRL.
However, the lender that you choose to work with may in
fact have a requirement that they need to do credit
and income underwriting, and if you choose to work
with that lender, then you need
to satisfy the lender requirements.
The alternative is, and the option that is available to
you is that you're free to use any lender that you want
to use in order to get that IRRRL.
>>Text: TO LEARN MORE ABOUT VA'S HOME LOAN GUARANTY Program, VISIT
www.benefits.va.gov/homeloans