For veterans who are currently in a VA loan, the government has made it easier than ever for them to refinance their mortgage into a VA loan with a lower rate through the VA streamline program. Usually, it is referred to as the VA streamline refinance — but occasionally it is also referred to by its official name - the VA IRRRL program.
VA Streamline Refinance Program The VA Streamline Refinance is designed to help veterans secure the lowest fixed interest rate available and is also known as the VA Interest Rate Reduction Loan program (IRRRL). The VA streamline loan is a way for current VA homeowners to lower their interest rate with very little or no out-of-pocket costs. The VA streamline is supposed to be “fast and easy” with minimum documentation requirements, it can help veterans start saving money on their monthly mortgage immediately.
VA Streamline Program highlights include:
VA Streamline Refinance Information from VA.gov
“Veterans are strongly urged to contact several lenders. There may be big differences in the terms offered by the various lenders you contact.
Some lenders may contact you suggesting that they are the only lender with authority to make IRRRLs. Remember - Any lender may make you an IRRRL.
Some lenders may say that VA requires certain closing costs to be charged and included in the loan. Remember - The only cost required by VA is a funding fee of one-half of one percent of the loan amount which may be paid in cash or included in the loan.
The occupancy requirement for an IRRRL is different from other VA loans. When you originally got your VA loan, you certified that you occupied or intended to occupy the home. For an IRRRL you need only certify that you previously occupied it.”
Participating in the VA streamline program only makes sense when the current VA loan that you have is a higher interest rate than an interest rate you could get today. And if you act reasonably fast, you should be able to save quite a a bit of money due to the recent drop in rates!