Refinancing with VA IRRL

[Cbush83]

Could someone help me understand this? I've been to the VA website and googled but it seems as though you have to go from fixed rate to an ARM in order to use this. Is this true. Are closing costs as much as original closing costs? Is it up front or rolled into the loan. And the last question for those of you that have used it. Did it make a big difference in your monthly payment.

**Background info.. My wife and I closed on our home on Feb 28th.. in 6 months to a year i am looking to refinance once i hit the 700's (15pts away now) across the board. My score was barely 620 when we brought this one.***

[VALoanMaster]

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@Cbush83 wrote:

Could someone help me understand this? I've been to the VA website and googled but it seems as though you have to go from fixed rate to an ARM in order to use this. Is this true. Are closing costs as much as original closing costs? Is it up front or rolled into the loan. And the last question for those of you that have used it. Did it make a big difference in your monthly payment.

**Background info.. My wife and I closed on our home on Feb 28th.. in 6 months to a year i am looking to refinance once i hit the 700's (15pts away now) across the board. My score was barely 620 when we brought this one.***

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Hi Cbush83,

No that's not true but you do have to reduce your rate & recoup your closing costs in 48 months or less. Closing costs should be a little less but not much & you can roll them into the new loan as long as you have enough equity to cover them.

Does that help?

[Cbush83]

Yes and Thank You..

Since the house appraised right at what we paid for it i'm assuming we have no equity. So in that case we have to wait it out a year or so...

[Anonymous]

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@Cbush83 wrote:

.***it seems as though you have to go from fixed rate to an ARM in order to use this  No, it is your choice..it depends on what interest rate you would prefer

. Are closing costs as much as original closing costs? No, they are basic fees, and some lenders will give you "credit" for some of it

Is it up front or rolled into the loan. It is your choice, you can have rolled in so this is a "no out of pocket" transaction

Did it make a big difference in your monthly payment Depends on what your interest rate is currently and what the VA is allowing today (3.87%), VA recommends not to go this route if it's less then 1 or 2% difference

I close on my IRRL on Wed, May 17..it took 13 days from app to closing. Everyone is different but in my case specifically

1.  I went from 4.75% to 3.87% (both fixed/30 yr)

2.  I am not required to make a payment until Jul 1, so I get to skip June's payment

3.  Fees are rolled into loan and MC gave me a 500.00 credit that took it to aprox 1300.00

4.  I am saving 125.00 a month doing this

5.  I can refi again at anytime after 6 mos for instance to pull out equity

6.  My MC only did a SP (to make sure I didn't default/late payments on any credit since I had gotten my original loan)

7.  This dose not change the age of my loan or how many payments are left

8.  Not required to get a new appraisal on property for this type of loan

Good Luck on which ever route you decide

** you might be surprised about having equity...house values are going up every day and the comps in your area are a good idea of that, also if you have USAA app they have a "mortgage value" on it that will give you a pretty close # to what your home is worth** 

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[Cbush83]

Well i bit the bullet and applied for the IRRRL.. Looks like my rates should be going from 4.25 to 3.50..A little over $100 saved and 2 mths without a payment .. Today was good day!

[Anonymous]

Outstanding!! I closed on mine yesterday and did a happy dance