Many Florida military homeowners have the option to refinance their loans now that mortgage interest rates are very low. In fact, as of 2023, interest rates are at near their lowest levels ever. VA ( through approved VA lenders in Leon County) offers a program known as the Interest Rate Reduction Refinancing Loan, or IRRRL for short.
This IRRRL program allows Tallahassee homeowners who already have a VA loan to refinance to a new loan with lower interest rates without all the headaches associated with a normal refinance. The IRRRL refinancing doesn’t require homeowners to produce their certificate of eligibility (COE) which borrowers had to provide to get their original VA loan.
The VA also doesn’t require a new appraisal as the loan to the value of the home is not considered. So if you are “upside-down” or “underwater” on your home value, don’t be concerned. Below we have listed some tips and things to remember when considering a VA refinance.
- Be sure to specify to your lender that you are interested in refinancing your existing VA mortgage. The lender should provide a lower interest rate than your current mortgage; as this is required of the streamlined VA Interest Rate Reduction Refinancing Loan program.
- Provide copies of the financial documents that prove your gross monthly income and your monthly expenses to your lender. These documents include your last two paychecks, your last two years of federal income tax returns, W2, and your bank savings and checking account statements. Don’t worry about your debt statements as this information will be pulled off your credit report.
- Give your lender permission to run your credit report. The VA oftentimes does not require credit checks for a refinance, but some lenders do in order to calculate your debt-to-income ratios.
- Some lenders may need to order a new appraisal to determine the current market value of your home. Again, the VA does not require an appraisal for an Interest Rate Reduction Refinancing Loan, but some private lenders may. You’ll have to pay for this appraisal upfront. Generally, appraisals cost about $550-$750.
- Make sure you are happy with the new interest rates and monthly payments your lender offers for the new loan. Sign the loan statements that make your VA streamline refinance official. Once you sign the papers, you will close soon after and start making your reduced payments. The entire process for closing an IRRRL refinance in Tallahassee is about 25-30 days.
- Be sure you also learn more about other streamlined VA refinance options on our VA refinance page. Also please note, VA still permits up to 100% LTV cash-out refinance for eligible homeowners with equity. You can learn more about the VA Cash Out Refinance here.
If you have any questions about a new VA purchase or refinance in the Tallahassee area, please call us at ph: 800-743-7556 or just submit the quick Info Request Form, and a VA loan specialist will contact you.
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