Take a look at your home loan and then at the VA IRRRL. What is the number one factor that homeowners look for in a home loan (or any loan for that matter)? Interest rates. It only takes about 30 seconds to see that IRRRL rates are seriously lower than any other loan out there almost 100 percent of the time. In fact, receiving a lower rate with a VA streamline refinance (another name for the IRRRL) is a requirement set in place by the VA (Department of Veterans Affairs) itself. But let’s not get ahead of ourselves.
Interest Rate Options for the IRRRL Loan
IRRRL stands for Interest Rate Reduction Refinance Loan. Take a closer look at that title: interest rate reduction refinance loan. In the title itself, it’s already obvious that VA IRRRL rates are going to be different than rates for other loans. In fact, they are going to be much lower than other refinances (such as the cash-out) and even lower than purchase loans.
When refinancing with the IRRRL loan, you can choose to have either the fixed-rate loan or hybrid ARM loan. The hybrid ARM brings the fixed rate and adjustable rate together into one loan, meaning the rate will be fixed for a certain amount of time then fluctuate after that period. This option tends to provide much lower rates than the fixed, but at the same time, the fixed still gains popularity due to its stability. In order to determine whether you are eligible for the VA streamline refinance, take a look at these 3 basic requirements:
- VA to VA: you cannot refinance a conventional loan into a VA loan with the IRRRL; you must already have a VA loan.
- Lower Interest Rate: your lender cannot give you an IRRRL if the market or other circumstances prevent you from receiving a lower rate (and consequently lower monthly payments) than what you already have. However, if you are refinancing into a fixed-rate loan, it is permissible for the rate to be higher.
- Previous Primary Residence: The property being refinanced must either be the current or previous primary residence of the borrower.
Current VA IRRRL Rates
Rates will vary depending on several factors. The market makes rates fluctuate up and down every day, week, and month, but VA IRRRL interest rates trends have gone down overall. As a result of the housing bubble burst, VA streamline refinance rates have stayed low, and investors, banks, the government, etc. work to keep the market stable. Low interest is a great thing for home buyers. However, since interest rates have hit an all-time low, the housing market is getting stronger. What does that mean? Interest rates are bound to go up eventually.
You can go to many different sites to see predicted rate trends and estimates for what rate a particular company can get you with your home loan. Unfortunately, these estimates are not going to be accurate for your situation. When you see various advertisements on billboards, commercials, flyers, and other forms of media about low interest rates, you have to be aware that those lenders are trying to reel you in. The numbers they post are likely the lowest, and incidentally most unattainable, rates they have. Your best chance at getting the most accurate and even lower rates is by contacting us.
Our loan officers will calculate your personal and specific situation to get you an accurate rate quote. We guarantee that our name “Low VA Rates” says it all, and on top of our promised savings, VA IRRRL rates today are at an all-time low. Don’t hesitate to call us up and get your own quote. Savings don’t have to wait until tomorrow, call Low VA Rates now.