In this article, we will explore the IRRRL program pros and cons. The IRRRL is also known as the streamline refinance. IRRRL stands for Interest Rate Reduction Refinance Loan.
There are a lot of benefits associated with the VA IRRRL program. Some of these benefits come hand in hand with it simply because it is a “streamline”. Other benefits come from the specific policies and terms the VA has in place to make the streamline refinance a more attractive option for veteran borrowers. While there are many pros to the IRRRL, there are also a few cons or situations it may not be appropriate. We will go over the IRRRL program pros and cons however in this article we will focus a little more on the IRRRL benefits.
- Save money by lowering your interest rate
- In most cases no appraisal is required
- Employment proof is usually not needed
- No dept to income verification
- No minimum FICO score check
- Change your loan terms
- Faster closing times
- Option to defer two months of mortgage payments
- Usually keep your escrow refund
- No cash due at closing
- Not enough net tangible benefit
- No cash back, however you might want to consider the VA cash out refinance option if you would like to tap into the equity of your home.
- As with any loan there are closing costs