Interest Rate Reduction Refinance Loan


If you have a VA loan and are considering a refinance to lower your interest rate an interest rate reduction refinance loan or a IRRRL may be right for you. It is a mortgage refinancing program offered but the U.S. Department of Veteran Affairs (VA) to home owners with VA loans. It is a VA-to-VA loan process, designed to allow homeowners to refinance a fixed loan at a lower interest rate or to convert an adjustable rate mortgage into a fixed rate mortgage. An Interest Rate Reduction Refinance Loan must be a VA loan to VA refinance, and it will reuse the veteran privilege initially used. A new Certificate of Eligibility (COE) is not required. Veterans may take their Certificate of Eligibility to show the previous use of their privilege or their lender may use an e-mail confirmation from the Department of Veteran Affairs in lieu of a certificate of eligibility.

Additional Eligibility Requirements:

  • Verify that you occupied the home.
  • Used a VA loan when you bought the home, or by substituting eligibility for that of the seller, if the loan was assumed.
  • No loan other than the existing VA loan may be paid from the proceeds of an IRRRL.

Loan limits can vary by county and are the amount a qualified Veteran with full privilege may be able to borrow without having to make a down payment but still will require a VA funding fee that will generally be paid at the time of closing with the option of financing. You will not require a funding fee if you are a veteran receiving VA compensation for a service-connected disability , a veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay, or a surviving spouse of a Veteran who died in service or from a service-connected disability.

Benefits of an Interest Rate Reduction Refinance Loan:

  • No appraisal or credit underwriting package is required when applying
  • May be done with “no money out of pocket”

Our local loan experts will walk you through your loan process from application to closing.

We can work with you to get you started online, over the phone, or face-to-face.

CBM Mortgage is your hometown lender and would be honored to be part of the Interest Rate Reduction Refinance Loan. Please contact a CBM Mortgage representative for more information regarding information about Interest Rate Reduction Refinance.

Additional terms and conditions apply. All approvals subject to underwriting guidelines. Not all applicants will qualify. This is an advertisement and not a commitment to lend.