VA Rate Reduction Refinance:
VA has a refinance loan called an IRRRL (Interest Rate Reduction Refinance Loan). If you currently have a VA loan and want to take advantage of a lower rate, this is the loan for you. The advantage of the IRRRL is:
-May not need an appraisal
-No income verification
-Can skip up to 2 house payments
Because of this, the IRRRL is a lower cost refinance loan. The costs that are involved may be rolled into the loan for a “no out of pocket” loan to you.
Basics of the VA IRRRL:
- You must currently have a VA loan
- The refinance must lower your principal and interest payments
- You can reduce the term of the loan (example: 30 year loan changed to a 15 year loan)
- You must have no late mortgage payments within the last 12 months
- You Cannot receive any cash back
- Any other liens must be subordinated to the VA loan
- Borrower must be up to date on any federal debts
Loan Example
Current Loan
Originally Borrowed $150,000 / 5.875% / 30 year loan
Principle & Interest Payment $887.31
Have been paying on this loan for 1 year. (29 years left to pay)
Total payments left on this loan is $308,783.88
Refinancing New Loan
New Loan Amount Estimate
$152,000 ( with closing costs)
4.5%
30 year loan Principle & Interest Payment $770.16
Monthly Savings of $117.15
If you apply your monthly savings towards your principle balance on your new loan it will pay off in 275 payments or 22 years and 11 months.
Total payments $244,010.25
** Saving you $64,773.63 in interest **
Apply Online Contact Tim Singleton NMLS # 143152 Direct: (417) 616-0783 Toll Free: 1-800-269-9875
Comments or questions are welcome.
