If you’re a veteran in Oakland, Macomb, Wayne, or any Michigan County, and you own a home using your VA home loan benefit. Does the stack of mail above look familiar? In some instances, local veterans have reported receiving 10-12 of these letters a week. So, what are they and why are you getting so many of them? Simply, they are offers to refinance your VA home loan using the VA’s Interest Rate Reduction Refinance Loan (IRRRL). You are getting them because mortgage interest rates are about .75% lower than they were this same time last year. Some of them look very official, like they are coming from the government directly, with a seal and all, but they really aren’t. Some may sound too good to be true, and they probably are, and some may use vague words like Escrow Refund Benefit, which is just another way to try to get you to engage with them. Point being, be careful with what you read and follow-up on.
Mortgage interest rates have been trending lower since December 2018 and there is a real opportunity for veterans, like yourself, to take advantage of a lower interest rate with a special, super-streamlined, refinance program just for veterans. If your 30-year rate is above 4.5%, there may be some meaningful savings available in our current interest rate environment.
Here are some highlights.
VA Home Loan Refinance – Interest Rate Reduction Refinance Loan Program (IRRRL)
- No appraisal or credit underwriting is required. This is huge! No W’2, paystubs, or tax returns are needed.
- No money out of pocket, in most instances, the closing costs and new escrows account can be rolled into your new loan.
- Reduced closing costs because and appraisal is not needed, and some lenders do not charge veterans any origination fees. Not all lenders are this generous, so please check with the lender you choose to use to confirm they do or do not change an origination fee.
- No Certificate of Eligibility (COE) is needed, although it would be good to show your lender prior use of your entitlement with a copy of your COE.
- No other loan than the existing VA loan can be paid off with proceeds from the IRRRL refinance.
- No cash back at closing.
- Reduced Funding Fee of .5%, can be financed.
- Great for switching from and ARM loan to a fixed loan.
In summary, the Interest Rate Reduction Refinance Loan is a “real thing” and it can potentially save you several thousands of dollars in principal and interest over the term of the loan. If you are interested in learning more about how the Interest Rate Reduction Refinance Loan (IRRRL), can help you, please do not hesitate to reach out, we would be delighted to help.