Active Duty or Veteran - Interest Rate Reduction Refinancing Loan

General Loan Program Requirements
You must have a current VA loan to be able to utilize the Interest Rate Reduction Refinancing Loan (IRRRL) program.

Loan Program Description
VA loan guaranties are made to service members, veterans, reservists and certain qualifying unmarried surviving spouses for the refinance of a VA home loan.

Loan Terms
The interest rate is variable and the length of the loan is not to exceed 360 months. Payments are due monthly. No more than 2 points may be rolled into this loan plus allowable closing costs.

Loan Application Process
Contact a lender to discuss qualifying for an IRRRL. The lender will make sure you meet basic program requirements, including the following:

• the monthly payment must be for less than the original loan
• the interest rate must be for less than the original loan (unless refinancing an Adjustable Rate Mortgage)
• the term cannot exceed 360 months or no more than 10 years more than the original loan (up to a max of 360 months)

Please note that if you are interested in obtaining a hybrid Adjustable Rate Mortgage (ARM) loan, that the loans are being offered as a pilot program until September 30, 2005. These loans are offered at 3, 5, 7 and 10 year fixed rates. IF YOU PLAN TO STAY IN YOUR HOME FOR LONGER THAN THAT FIXED PERIOD, AN ARM MAY NOT BE IN YOUR BEST INTEREST. It is a good idea to use a mortgage calculator to determine what the best loan and interest rate are for you and your family.

Loan Managing Agency
U.S. Department of Veterans Affairs