Buying a home is a huge financial commitment and finding the right mortgage coupled with the best interest rate can be a confusing process.
And while VA home loans have many perks, there is a way to lower your interest rate, which in turn may help decrease your monthly mortgage payment.
“When you are looking to lower your payment the VA’s Interest Rate Reduction Refinancing Loan, more commonly referred to as the IRRRL, is easy to qualify for,” says Craig Clark, VP of Portfolio Streamline at Freedom Mortgage.
In order to qualify for the IRRRL (pronounced earl), you do not need to have your credit score checked.
“Credit score is not a factor. In fact, we don’t even pull your credit report when we give you a VA IRRRL,” Clark says.
“As long as your current payment is current and not from two months ago, or five months ago. [If] your payment is going to go down, and your rate is going to go down, you qualify.”
An IRRRL can only be used to refinance a property where you have already used your VA loan eligibility. You can also use a VA IRRRL to refinance an adjustable rate mortgage into a fixed rate mortgage.
Some lenders offer IRRRLs as your chance to reduce the term of your loan from 30 years. While this can save you money in interest over the life of the loan, you may see an increase in your monthly payment if the interest rate reduction is not at least one or two percent.
If you’re concerned about what the VA loan process may look like for you, speak with a Freedom Mortgage loan specialist about your specific situation anytime at 800-601-0770, or apply online today.
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