The truth about a VA IRRRL

What I usually need to get started

Typically, I just need an updated driver’s license and current mortgage statement. A true VA streamline IRRRL generally requires very little documentation and no appraisal.

• Updated driver’s license
• Current mortgage statement
• A quick review of your existing VA loan
• Your goal for the refinance

Know the red flags

If a lender asks for all the same income, asset, and employment documents you provided for the original loan, ask why. They may not be processing it as a true VA streamline IRRRL.

• Do not judge the offer by the advertised rate alone
• Check how many points and fees are attached
• Compare the monthly savings with the total cost

Seasoning and recoupment

VA IRRRLs generally require at least 6 payments and 210 days of seasoning. Applicable refinance costs must generally be recouped within 36 months.

• Confirm that the loan meets seasoning rules
• Calculate the true monthly savings
• Divide applicable costs by the monthly savings
• Make sure the refinance supports your actual goal

The bottom line

A lower rate does not automatically make a refinance a good deal. I will walk through the payment, costs, break-even point, and long-term savings so you can see whether the numbers truly make sense.