Why won't my current lender offer the VA IRRRL Program?
Your lender has a fiduciary responsibility to it's share holders and won't offer you a lower rate if they are able to collect intersest at a higher rate.
What does IRRRL Stand for?
IRRRL is an acronym for interest rate reduction refinance loan.
Sounds to good to be true, what is the catch?
There is no catch. The VA rewards VA loan holders that are current on their mortgage payment. They allow borrowers to streamline to a lower rate if the current market is below their current rate. By supporting the program the VA, who guarantees your loan also lowers the risk of VA loan holders defaulting, which ultimately protects the VA guarantee system. With more VA loan holders affording their loans and less defaulting, the VA can then guarantee more VA loans and have more Veterans become home owners.
I'm late on my on my mortgage payment, can I still do the IRRRL program?
You must be current on your mortgage to qualify for the VA IRRRL program. If you have fallen behind on the mortgage payments you must first bring the payments current to be approved. You can still apply for the VA IRRRL program. We can get the process started but you must be current before final approval. Once you are current and have a final approval you will skip 2 payments upon closing on the new loan.
Is there a limit to the number of streamlines I can do?
No, you can streamline as many time as is benefitcial to you. That is why there is no benefit in waiting for interest rates to go down. If the current rate is lower than what you have, you should streamline to lock in that rate. If rates go up, you will have the lowest rate, if rates go down you can simply streamline to the lower rate.
How can you offer to pay some of my costs?
We don't charge the borrower anything to do the IRRRL program. We don't charge Origination points, Discount Points, Underwriting fees, Administration fees, or processing fees. We can offer the VA loan holder a credit toward their prepaids, VA funding fee, or Title costs. We pay some of the borrowers cclsoing costs if there is enough service release premium to cover these fees. The large volume of VA IRRRL's that our company originates provides discounted title costs and premium incentives with investors. We then pass that incentive and savings on to the Veteran.
Do I have to bring any money to the closing?
No, you will bring nothing to the table and skip two mortgage payments in the process. In addition to saving on your monthly mortgage payment you can recieve a refund for your current escrow account. The new loan will include a deposit into your new escrow account in the correct amounts to cover upcoming insurance and tax payments.
Can I take someone off of my loan when doing the VA IRRRL program?
Yes, you can remove someone from the mortgage. In most cases you will be asked to qualify your income if taking someone off of the promise to pay. There are circumstances where this can be arranged such as divorce or death. If you are removing someone from title you will have to execute a quit claim deed, which we will arrange for you through a title company.
Do I still qualify for the IRRRL program if my interest rate is only going down .125%
Yes, we will make sure your loan meets the investor's recoup rule. You can still enter the IRRRL program as long as your rate is decreasing. If you are currently in an ARM you can still do the IRRRL program by streamlining to a fixed rate.
May I do the IRRRL program to reduce my mortgage term?
Yes, you can enter the program to reduce your mortgage term down to a 25 year, a 20 year, a 15 year, or any odd term loan from 18-29 years.