Mortgage glossary
IRRRL
Definition: An IRRRL, or Interest Rate Reduction Refinance Loan, is a VA streamline refinance that lets borrowers with an existing VA loan refinance into a new VA loan with reduced paperwork.
An IRRRL typically requires no new appraisal and limited income documentation, though lenders still apply their own credit standards. The refinance must provide a net tangible benefit, such as a lower rate or moving from an adjustable to a fixed rate, and VA sets recoupment and seasoning rules for fees and timing.
IRRRLs generally cannot be used to take cash out; that requires a VA cash-out refinance. The VA funding fee on an IRRRL is lower than on a purchase, and it is waived for veterans with a service-connected disability rating of 10% or more. We offer IRRRLs.
Related terms
Reviewed by Kyle Richardson, NMLS #863464. General information, not advice for your specific situation. All glossary terms
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