A VA IRRRL (Interest Rate Reduction Refinance Loan) provides a streamlined process for refinancing a VA loan to take advantage of lower interest rates or to reduce the repayment period. The VA IRRRL is designed to reduce the interest rate of an existing VA loan or convert an existing VA adjustable rate mortgage loan into a fixed rate mortgage loan.
A VA IRRRL has several benefits, which include, but are not limited to:
Property appraisal may not be required
New Certificate of Eligibility (COE) is not required
Funding fee is .5% (0% for disabled veterans)
A VA IRRRL cannot be used to refinance a non-VA mortgage. It must be a VA-to-VA refinance, and the IRRRL will reuse the entitlement you originally used.