Mortgage Rates were/are at a 37 year low. They are still close to 5% but they’re on the way up and if you don’t “fall in” soon you might miss out on the opportunity of a lifetime. The VA IRRL is a great REFI option and there hasn’t been a time in 30 years when it made more sense.
As this economy gets tougher every dollar you save could be the one that saves you!
The Veterans Administration offers Interest Rate Reduction Refinancing Loans also known as Streamline Refinances.
Interest Rate Reduction Loans
With this loan you are not able to take cash out but you can reduce your current interest rate.
For example your current rate is 6.75% on a 30 year fixed rate mortgage
Your loan amount is $130,000 Payment is $843.00
- You want to do a VA IRRL the rate you can obtain now is 6.00%.
- You can reduce your payment by $64.00 Which would save you $768 a year
- And $23,040.00 saved throughout the life of the loan.
To qualify for a VA IRRL you must meet the following guideline:
- No late payments in the last 12 months on your current mortgage.
There is no appraisal necessary
There is no underwriting
There is no credit check
This is a great way to save money and reduce your interest rate.
VA Refinancing with Cash Out
You can refinance your current mortgage with the maximum Loan to Value amount of 90%
The maximum guarantee for cash out is $36,000.
What is the funding fee for a VA Loan?
- First time use - Regular Military with no down payment is 2.15%
- With a 5% down payment = 1.5%
- With a 10% or more down payment = 1.25%
- Guard/Reserves No down payment = 2.40%
- With a 5% down payment = 1.75%
- With a 10% or more down payment = 1.5%
- Cash out refinancing loans Regular military = 3.30%
- Guard/Reserves = 3.30%
Interest Rate Reduction Refinancing Loans
- The funding fee is .5% unless a manufactured home, the fee is 1.00%
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