Home » Blog » What is an IRRRL VA refinance loan?

What is an IRRRL VA refinance loan?

Savings could add up with an interest rate reduction refinance loan.

An IRRRL, or Interest Rate Reduction Refinancing Loan, is a quick VA refinance option with fewer qualifications and less paperwork than other refinance loan options. It’s meant to be a quick and non-complicated refinance option for qualified VA homeowners, and there is no appraisal requirement. If you have an existing VA loan and are looking for a quick way to refinance at a lower rate or shorten the term of your mortgage, an IRRRL might be a great option for you!


How do I know if I qualify?

To qualify for a IRRRL you must already have an existing VA loan you are looking to refinance. Approval is also very simple. No credit review is needed, making this one of the easiest refinance options available to VA homeowners.


Is it worth it? How would I benefit from an IRRRL?

With an IRRRL, you can potentially refinance at a lower interest rate than when your original VA loan was taken out. It gives existing VA homeowners like you a chance to take advantage of the current low interest rates. If you are looking to reduce your monthly mortgage payment this might be a great opportunity.

You can also shorten a 30-year mortgage to a 15-year mortgage when you refinance with an IRRRL. Be aware that your monthly payment will probably be larger when shortening the term of your mortgage. However, depending on your goals and financial situation, this might be an opportunity to cut your number of mortgage payments significantly. You can also switch from an existing ARM (adjustable-rate mortgage) to a new fixed-rate loan.  

See also: 5 Reasons for a Mortgage Refinance Other Than Lowering Your Payment


How much does it cost? How do I apply?

Before discussing the cost, it’s a good idea to understand what the VA funding fee is, exactly.

As we shared in VA Funding Fee: A Closer Look, the VA funding fee is a percentage of the loan amount that is applied to every VA purchase and refinance. The proceeds from the fee go directly to the VA to help keep the loan guarantee program running. While this is a benefit that all veterans have earned, the fee helps to offset any losses that the VA takes on by issuing the guarantee, so that this program will continue to be available for future generations.

The amount of paperwork required for this streamlined loan is very minimal. The VA funding fee for an IRRRL only 0.5%, and there is an exception to this for disabled veterans, or spouses of deceased veterans who died in service or from an injury sustained during service.

If you are ready to get started with an IRRRL, you find your local branch, and contact them, or apply today! For more information, please contact our VA specialists at 1-833-VET-EASY.If you are ready to find out more, we would be happy to answer any questions. If you are ready to get started, you can start your application now, or contact us today!If you would like to know more, you can call me, contact me, or If you are ready, you can apply now! It would be my honor to help you plan your financial goals.


Benchmark brings you home.

benchmark circle icon