IRRRL is the best option if you currently have a home loan with a VA guarantee and wish to lower your monthly mortgage payments.

You can replace your current loan with a new one with alternative conditions using a VA-backed cash-out refinance loan.

You need to already have a VA mortgage to refinance into an IRRRL.

If you're not refinancing out of a VA loan with an adjustable rate, the rate on your new loan must also be lower.

An IRRRL has a 0.5% funding fee added to the loan amount.

Unless it's not your first VA loan, the fee for a VA cash-out refinance is 2.3% of the total loan amount.

The funding charge for subsequent VA loans is 3.6%.

VA loans don't need mortgage insurance, unlike conventional and FHA loans.

Some lenders may need a minimum credit score, minimum income, and an assessment during the previous 12 months for VA streamline refinancing.

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The typical debt-to-income ratio is 41% or less, although lenders will accept ratios up to 56%.