{"id":43195,"date":"2018-02-27T19:20:23","date_gmt":"2018-02-27T19:20:23","guid":{"rendered":"https:\/\/one.sightlinemg.com\/marinecorpstimes\/uncategorized\/2018\/02\/27\/irrrl-101-how-to-use-vas-refinancing-program\/"},"modified":"2026-08-08T04:10:22","modified_gmt":"2026-08-08T04:10:22","slug":"irrrl-101-how-to-use-vas-refinancing-program","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/marinecorpstimes\/va-loan-center\/2018\/02\/27\/irrrl-101-how-to-use-vas-refinancing-program\/","title":{"rendered":"IRRRL 101: How to use VA\u2019s refinancing program"},"content":{"rendered":"\n

The Interest Rate Reduction Refinance Loan, or IRRRL<\/a>, allows veterans to take advantage of lower interest rates while maintaining the backing of the VA in their new mortgage setup. And while VA-backed refinancing has made headlines recently<\/a>, they\u2019ve stressed the problems<\/a> with frequent refinancing<\/a> instead of how the program is supposed to work.<\/p>\n\n\n\n

If you\u2019re looking at reworking your existing VA-backed loan, here are some guidelines, restrictions and red flags to consider as you navigate the IRRRL process, courtesy of official VA sources.<\/p>\n\n\n\n

1. ARMed service. <\/b>The refinanced loan must include a lower interest rate than the initial loan, with one exception: Borrowers looking to refinance an adjustable-rate mortgage, or ARM, into a fixed-rate setup may do so at a rate higher than they\u2019re paying (likely so they can avoid future rate hikes).<\/p>\n\n\n\n

2. Watch your payments. <\/b>Though the rate may go down, your payments may not, and that could be a good thing. Many borrowers use the refinancing opportunity to shorten the length of their loan, cutting the rate while paying off their home faster. This could mean higher payments, but over a shorter span. Lenders must take special steps if the payments jump by 20 percent or more, regardless of the loan\u2019s term.<\/p>\n\n\n\n

3. Length limit. <\/b>Borrowers also can go the other way with an IRRRL, opting for a longer-term loan with a smaller interest rate. VA rules require the refinanced loan to be no more than 10 years longer than the original loan\u2019s term, with a maximum of 30 years and 32 days.<\/p>\n\n\n\t